In the NJBIZ article, “Could new Trump administration ease federal limits on cannabis?”, it was reported that as the cannabis industry braces for the return of Donald Trump to the White House, stakeholders are watching closely for potential shifts in federal policy. While past Republican administrations have been cautious on cannabis, Trump’s campaign rhetoric has sparked cautious optimism, with promises of “smart regulations” and an openness to rescheduling cannabis.
For Joshua S. Bauchner, partner and chair of Mandelbaum Barrett PC’s Cannabis, Hemp, & Psychedelics Practice Group, these developments represent a significant opportunity for both the industry and policymakers to address systemic challenges.
The Cannabis Industry’s Impact on Jobs and the Economy
Bauchner highlights the transformative potential of cannabis for the U.S. economy, noting, “The cannabis space employs almost a half million people nationwide. It’s massive – larger than the coal industry and solar industry.” With this job creation comes broader economic growth, particularly as all regulated cannabis products are grown and manufactured domestically. By 2027, the industry is projected to generate $53.5 billion in revenue.
“This administration, which prides itself on economic growth and job creation, would be hard-pressed to ignore an industry with an 88% approval rating across political demographics,” Bauchner says. “Cannabis checks a lot of boxes for a populist president: jobs, domestic production, and bipartisan support.”
Banking Reform: A Game Changer
Federal restrictions on cannabis banking remain one of the industry’s biggest hurdles. Bauchner points to the SAFER Banking Act as a key priority for the cannabis sector. “The lack of access to traditional banking forces businesses to operate in cash, making them targets for crime and complicating tax collection and compliance,” he explains.
Bauchner believes that banking reform aligns with Trump’s broader agenda of deregulation and market accessibility. “Allowing states to handle cannabis regulation while removing federal barriers, like restrictions on banking, fits neatly into the administration’s stated priorities of reducing government interference.”
Rescheduling vs. De-Scheduling
The rescheduling of cannabis from a Schedule I to a Schedule III substance has been a focal point of discussion. However, Bauchner questions the necessity of such a move. “For all intents and purposes, cannabis is already de-scheduled in practice. The federal government isn’t enforcing drug laws against state-legal cannabis operations. So why expend political capital on rescheduling when the status quo is functioning?”
Instead, Bauchner advocates for a hands-off federal approach that lets states determine their own cannabis policies without interference. “This aligns with Trump’s emphasis on state rights and deregulation,” he adds.
A Wild Card Presidency
Despite optimism, Bauchner remains pragmatic about the unpredictability of the incoming administration. “Trump is a wild card,” he notes. “He has expressed support for cannabis reform but has also shown a willingness to pivot. The industry needs to stay vigilant and adaptable.”
The Road Ahead
As the cannabis industry prepares for potential changes, Bauchner’s insights underscore the need for strategic planning. “Whether through banking reform, rescheduling, or maintaining the current hands-off approach, the industry is at a pivotal moment,” he says. “This administration has the chance to solidify cannabis as a cornerstone of economic growth and innovation.”
For Bauchner and Mandelbaum Barrett PC’s Cannabis & Psychedelics Practice Group, the focus remains on helping clients navigate these uncertainties with precision and foresight, ensuring they are ready to thrive in whatever regulatory environment emerges. You can contact Bauchner and the Cannabis, Hemp and Psychedelics Group at cannabis@mblawfirm.com or call 646-369-0250