U.S. Legal Landscape for Cannabis Industry – Overview of Federal‑State Conflict

CHAPTER IV U.S. Legal Landscape N The legal landscape for the cannabis industry in the United States continues to be characterized by conflict between federal prohibition and the steady advance of state legalization. According to federal policy, Americans can access tobacco, alcohol and prescription drug products that kill thousands each year, but they cannot access cannabis because it is a dangerous drug with no currently accepted med- ical application in the United States (notwithstanding the federal government holds a U.S. patent for methods of treating diseases with cannabinoids). Meanwhile, 46 U.S. states permit some use of canna- bis products as medicine by adults or children, and 8 of those states have laws that regulate cannabis like alcohol. The U.S cannabis industry has proven adept at navigating this federal-state conflict and is experi- encing rapid growth despite it. Moreover, we believe that federal policy will move (and may already be moving) in a new direction—one that would facilitate federal approval of cannabis-derived drugs and ultimately, we believe, give rise to a regulatory and political environment in which the U.S. Congress could fully legalize both medical and recreational cannabis. In this chapter, we summarize three categories of state cannabis laws and examine certain federal laws and policies that impact the cannabis industry, including federal laws related to drug and food reg- ulation, banking and finance, and intellectual property. Finally, we offer our views about how the can- nabis legalization trend and related developments likely lead to a federally legal U.S. cannabis industry. © 2017 Ackrell Capital, LLC | Member FINRA/SIPC 61 HOUSE_OVERSIGHT_024697