In 2024, the national conversation about cannabis rescheduling and descheduling has reached a critical point, and the decisions made at the federal level could have a significant impact on Colorado’s thriving cannabis market. At Green Valley Dispensary, conveniently located near Denver International Airport (DIA), we’re closely following these developments and are here to help you understand what they could mean for you, the consumer, and for dispensaries across the state.
What Does Rescheduling and Descheduling Mean?
Currently, cannabis is classified as a Schedule I drug under the Controlled Substances Act (CSA). This categorization places it alongside substances like heroin, deemed to have no accepted medical use and a high potential for abuse. However, many states, including Colorado, have legalized cannabis for both medical and recreational use, creating a disconnect between federal and state policies.
- Rescheduling involves moving cannabis to a less restrictive category, such as Schedule II or III. This would acknowledge its medical benefits while still recognizing it as a controlled substance.
- Descheduling, on the other hand, would remove cannabis from the CSA entirely, making it legal at the federal level. This would result in cannabis being treated similarly to alcohol or tobacco.
The Current Push for Rescheduling in 2024
In 2023, the Department of Health and Human Services (HHS) recommended rescheduling cannabis to Schedule III. This was a landmark moment, as it marked the first time a federal agency formally acknowledged that cannabis does not belong in the same category as the most dangerous drugs. Now, in 2024, the Drug Enforcement Administration (DEA) is expected to review this recommendation and potentially act on it.
While the cannabis rescheduling conversation is heating up, descheduling remains a long-term goal for many advocates. Either outcome would affect Colorado’s cannabis industry, and here’s how.
What Cannabis Rescheduling Could Mean for Colorado’s Cannabis Market
Colorado has been a trailblazer in cannabis legalization, leading the way in both medical and recreational use. However, federal cannabis rescheduling could bring significant changes to the landscape, even in an established market like Colorado.
- Access to Banking Services
One of the biggest challenges for dispensaries across the country, including those in Colorado, is the lack of access to banking services. Since cannabis is currently federally illegal, most banks are hesitant to work with cannabis businesses, forcing many to operate on a cash-only basis. Schedule III cannabis rescheduling could change this, allowing banks to offer services to dispensaries without fear of federal penalties. This would make financial transactions smoother and safer for both businesses and consumers. - Tax Relief for Dispensaries
Currently, cannabis businesses are subject to Section 280E of the Internal Revenue Code, which prevents them from deducting typical business expenses due to cannabis’s Schedule I status. This results in a significantly higher tax burden compared to other industries. If cannabis is rescheduled to Schedule III, it could exempt businesses from 280E, allowing them to claim deductions and potentially lowering the cost of doing business. This could lead to better pricing for consumers and more investment in product variety and quality. - Increased Research Opportunities
Cannabis rescheduling would make it easier to conduct research on cannabis, particularly its medical benefits. This could lead to new products entering the market, especially for medical use. For Colorado’s cannabis consumers, this means access to more information about the effects of various strains and products, helping them make more informed choices. - Consistency in Regulations
While Colorado has its own set of cannabis regulations, federal cannabis rescheduling could lead to more consistency across states. This might include standardized testing, labeling, and safety protocols, ensuring that consumers get high-quality, safe products regardless of where they purchase them. It could also mean interstate commerce for cannabis, opening the door for Colorado-grown products to be sold in other states.
What Descheduling Could Mean for Colorado
While rescheduling would bring some significant changes, descheduling cannabis would have an even bigger impact.
- Federal Legalization
Descheduling would effectively legalize cannabis at the federal level, putting it on the same regulatory footing as alcohol or tobacco. For Colorado, this could mean even more rapid growth of the industry, with new opportunities for both consumers and businesses. It could also lead to changes in how cannabis is taxed and regulated at both the state and federal levels. - Interstate Commerce
One of the most significant outcomes of descheduling would be the potential for interstate commerce. Colorado’s cannabis industry, which is already one of the most mature in the country, could export products to other states, expanding business opportunities for local growers and dispensaries. However, this could also lead to increased competition from out-of-state producers, which might affect pricing and availability. - End of Federal Criminalization
Descheduling would also mean an end to the federal criminalization of cannabis. This could lead to broader social and criminal justice reforms, including the expungement of cannabis-related convictions. In Colorado, where cannabis is already legal, this could still have a positive social impact, particularly for communities that have been disproportionately affected by past cannabis laws.
What’s Next for Colorado’s Cannabis Market?
While it’s uncertain whether cannabis will be rescheduled, descheduled, or remain a Schedule I substance, the conversation is moving forward in 2024. Colorado’s cannabis industry is poised to adapt to any changes that may come, continuing to serve both recreational and medical consumers with high-quality products.
At Green Valley Dispensary, we’re keeping a close eye on these developments and are committed to providing our customers with the latest updates and the best cannabis products, whether you’re a local or just visiting Denver via the airport. As always, we offer a wide selection of flower, edibles, concentrates, and more, so stop by our location near DIA to explore what we have to offer!
Stay tuned to our blog for more updates on cannabis rescheduling and what it means for Colorado and the broader cannabis community!
Learn more about the DEA’s rescheduling timeline here!