The end of August and transition into fall may not only signal a change in seasons, but it can also mark the beginning of change in the nation’s capital. Most people were probably at the beach soaking up the final days of summer sun when the Department of Health and Human Services (HHS) sent a letter recommending that cannabis be classified as a Schedule III substance under the Controlled Substances Act (CSA). Arriving at a point in time when few expected it to arrive, the news of a potential reclassification led to positive change for U.S. cannabis stocks. With that said, it is still amusing that media members continue to note Canadian stocks in this discussion when this move directly benefits U.S.-based cannabis professionals and companies.
“Certainly, moving cannabis off of Schedule 1 is the right decision and long overdue,” notes Patrick Rea, managing director at Poseidon Asset Management. “Though a full descheduling would be preferred and likely most appropriate for cannabis, we welcome smart decisions and progress towards full legalization and regulation in the legal cannabis industry.”
Rea’s statements ring true as we continue to dig in and unpack what largely seems like a positive move by the federal government. It will be interesting to see how this move could lead to tangible change in the future.
