The Election’s Impact on Cannabis (Part 2/2)

Jared Shulman, CFA
3 min readNov 4, 2020

For those who forgot to bring their history textbook, read Part 1.

So how did FDR’s camp push through the end of Prohibition? Will the Biden regime be able to (or interested in) following suit by rescheduling marijuana? While the final votes are tallied, let’s have a look at three paths for changing legislation and have some fun speculating.

A massive election with major implications
  1. Congress. The 1933 21st Amendment was unique. It was the first and only time an Amendment was repealed and, importantly, one done so by state ratifying convention. Congress adopted the Blaine Act and proposed the change in early 1933. By December, the amendment had support across 36 states and was adopted. Though a full repeal of an amendment is not necessary for Biden, he may need Congress on his side to push the DEA to reschedule. This senate race, highly contested as it was, looks like it will end without a majority leader. This being the case, it will take at least one Senator to cross the lines to push any number of the existing canna-bills through Congress. This is not impossible but is certainly no slam dunk. With New Jersey and Arizona fully converting to recreational and others moving the needle on medicinal legislation (including Mississippi, a state that stayed dry until 1964!), the cannabis movement is clearly picking up steam. That said, cannabis supporters may have to wait until 2022 for a Senate majority to spur change the old-fashioned way.
  2. Executive Branch. An executive order, as we’ve come to know as the only way change happens in America (tongue firmly in cheek), gives the President the right to issue federal directives. Changing the scheduling of marijuana, passing the SAFE Banking Act, or stealing gold from the pockets of Americans are all on the table. FDR, the culprit of the infamous EO 6102, made an executive decision to do what was right for the country. All of his decisions at the time were made under the auspices of improving the economy. The 21st Amendment, supported by FDR and pushed through Congress, is believed to have brought 500,000 jobs to Americans. Biden, inheriting a challenging economic environment may have to do some number-crunching himself. Although unlikely, it is possible that one of Biden’s early decisions is to fuel job creation on the back of the booming cannabis industry. This may not happen overnight but is definitely in the realm of possibility over the next year.
  3. US Attorney General. William Barr, like so many AGs before him, has not budged on rescheduling cannabis administratively. The Controlled Substance Act allows the Attorney to make an administrative change (billing out at high fees and asking the associate to do the work) and has been tempted by petitions in the past. Though it is likely we’ll see a new face in the AG seat in the near future, it is far from likely that any administrative change follows. But hey, one can still dream.
Cannabis change happened regionally and making serious inroads nationally.

As we countdown the minutes, hours or days (dare I say weeks) for this progressive movement to be dubbed official, it is important to remember that change takes time. The cannabis industry can enjoy regional wins and national recognition. And though it would appear we’re still one to two years from any major legislation, one can take comfort in knowing the end is in sight. So grab your favorite strain, your favorite snack, and perhaps some much needed rest. You can still celebrate 11-“4–20.”

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Jared Shulman, CFA

A self-proclaimed authority on junk food and a strong hunch on some other stuff.