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DEA Hearing Ends: What Happens Next? | TDR Cannabis in 5
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DEA Hearing Ends: What Happens Next? | TDR Cannabis in 5

The Most Consequential Cannabis Hearing in US History?

Overview of the Hearing

  • The hearing, which began on June 29 and concluded on July 15, is considered pivotal for federal cannabis policy.
  • It has potential implications for the cannabis industry's tax future and upcoming legal battles.

Key Moments from Week One

  • The DEA defended its proposed rule to reschedule cannabis to Schedule III, surprising many observers.
  • Dr. Dominique Chiapperino from the FDA testified that cannabis has accepted medical use and lower abuse potential than Schedule I and II substances.
  • Opponents criticized the FDA's new two-factor test for medical use, claiming it was a strategic shift due to cannabis's inability to meet previous standards.

Opposition Strategy

  • All seven designated participants opposed rescheduling; no industry advocates were allowed to testify, raising concerns about bias in testimonies.
  • The ALJ restricted public access by refusing live streaming, despite significant national interest.

Week Two Developments

  • From July 2 onward, opponents presented their arguments focusing on neuroscience claims related to cannabis use disorder and impaired driving.
  • SAM's Kevin Sabet described the hearing as surreal given the DEA’s historical stance against cannabis.

Government Positioning

  • The DOJ filed a brief opposing attempts by certain groups to pause the hearing, indicating a commitment to moving forward with rescheduling efforts.

Emerging Insights from the Hearing

  • Three key takeaways emerged:
  • The DEA is committed to supporting Schedule III status for cannabis.
  • Opponents are preparing for litigation based on challenges to FDA's medical use criteria.
  • The evidentiary record is heavily skewed towards prohibitionist perspectives.

Future Implications

  • If Schedule III is finalized, it could eliminate IRS Section 280E restrictions, significantly lowering effective tax rates for operators in the industry.

Conclusion of Hearings

  • Despite criticisms regarding balance and fairness, this hearing marked a historic moment where federal support for cannabis’s medical legitimacy was publicly acknowledged.
Video description

The DEA’s Administrative Law Judge hearing has officially wrapped after more than two weeks of testimony, closing one of the most closely watched proceedings in the history of U.S. cannabis policy. In the latest TDR Cannabis in Five, host Shadd Dales recaps the biggest moments from the hearing, what stood out over 17 days of testimony, and where the federal cannabis rescheduling process goes from here. The episode covers the federal government’s decision to defend its proposed move to Schedule III, the FDA’s medical-use determination, the arguments presented by prohibition-focused organizations, and why many of those groups are already laying the groundwork for future legal challenges. Shadd also discusses the Department of Justice’s response to efforts aimed at delaying the process, the significance of the hearing record now that testimony has concluded, and why the structure of the proceeding could become an important issue if the final rule is challenged in federal court. With testimony now complete, attention turns to the Administrative Law Judge’s recommended decision and, ultimately, the DEA Administrator. This episode recaps the key developments from the hearing, the arguments that shaped the record, and where the federal rescheduling process stands today. 00:00:00 ALJ Hearing Ends Today 00:00:45 DEA Defends Schedule III 00:02:01 Hearing Faced Balance Questions 00:02:48 Opposition Presents Anti-Cannabis Case 00:04:02 DOJ Backs Rescheduling Effort 00:04:28 Three Key Hearing Takeaways 00:05:05 What Happens Next? 00:05:45 Historic Moment For Cannabis #Cannabis #ScheduleIII #DEA #CannabisNews #FederalCannabis #CannabisStocks #CannabisInvesting #280E #MarijuanaNews #CannabisRescheduling Want to see more Cannabis Reform? 🎬 https://youtu.be/9oZL8VjdDkw 🎬 https://youtu.be/9oZL8VjdDkw 🎬 https://youtu.be/T5zM87_yEeA 🎬 https://youtu.be/dCOp_IhaZqc Want to stay updated on Cannabis, Small Cap, AI, and Crypto? Subscribe to our Daily Baked newsletter: https://newsletter.thedalesreport.com/subscribe Find us on social media and podcast platforms: ✅ Facebook: https://www.facebook.com/TheDalesReport ✅ Twitter: https://twitter.com/TheDalesReport ✅ Instagram: https://www.instagram.com/dalesreport ✅ LinkedIn: https://www.linkedin.com/company/the-dales-report/ Apple Podcasts: https://tinyurl.com/TDRTradetoBlackonApplePodcasts Spotify: https://tinyurl.com/TDRTradeToBlackonSpotify Website: https://thedalesreport.com/ For copyright matters, contact: sdales@thedalesreport.com Podcast Disclaimer (Financial Interests) The views and opinions expressed in this podcast are those of the hosts and guests and do not necessarily reflect the official policy or position of any company, organization, or employer. The content is provided for informational and entertainment purposes only and should not be taken as financial, investment, or legal advice. The hosts and/or guests may hold positions in the companies, stocks, or financial instruments discussed during the show. These holdings should not be considered endorsements or recommendations to buy or sell any securities. Listeners are encouraged to do their own research or consult with a qualified financial advisor before making any investment decisions. By listening to this podcast, you agree that the hosts, guests, and producers are not liable for any decisions made based on the information discussed. Full Disclosures: https://thedalesreport.com/website-terms-of-use/