Donald Trump and Democrats didn’t agree about much this year but for a few exceptions. One area of agreement centered on reforming outdated marijuana laws.
This summer, President-elect Trump outlined reasonable and fair changes to cannabis laws that included an end to minor possession incarcerations, legalization of adult use in Florida, recategorization of marijuana to a lower-risk drug, support for states’ rights to pass reforms and commercial banking access for legal cannabis businesses.
And voters agree. Public opinion surveys by The Tarrance Group showed that more than two-thirds of likely voters in the November presidential battleground states favored these changes. Other pollsters have found similar sentiment nationally for years. A new generation of Republicans and Democrats are embracing these reforms as well.
Yet Congress has failed to act. With Trump ready to take the helm, the time is right for progress. A starting point is passage of the SAFER Banking Act, which would give legal cannabis businesses access to the federal banking system in the same manner other businesses in America conduct their commercial banking. Doing so before year end would signal a commitment for change.
Consider the popularity and impact of putting these changes in motion now. Thirty-eight states - 39 if you count the ballot initiative passed in November by Nebraska voters - have legalized marijuana for medical use, and two dozen more have greenlit cannabis for adult use. Still others are considering legalization. With approximately 40,000 state-licensed businesses in operation, legal cannabis is a $33 billion annual industry creating an estimated 440,000 jobs.
The SAFER Banking Act creates a solid foundation for other changes. That’s because failure to give cannabis companies access to commercial banking forces them to conduct business in cash and limits their ability to make investments to fuel more economic growth.
As a result, they are exposed to physical threats and crime, which hurts their employees and broader communities. Beyond reducing potential crime and providing legal cannabis businesses the ability to bank with and borrow from federally backed financial institutions, SAFER would enable their employees to take out mortgages and do routine bank transactions.
Passage of SAFER could set up the Trump administration to take the second step of following through with the recommendation to reclassify marijuana. Currently, marijuana is a Schedule I substance, a designation reserved for drugs with no medical value and a high potential for physical or psychological dependence and abuse. These include heroin, LSD and ecstasy. The Department of Health and Human Services recommended earlier this year to list marijuana with Schedule III drugs, which have accepted medical uses and a moderate to a low abuse potential.
If rescheduling happened, medical researchers would be freer to look for beneficial uses of cannabis. Additionally, cannabis companies would be allowed for the first time to take advantage of standard tax benefits available to other companies.
Never has there been a better time for much-needed sensible cannabis reform. Things are lining up for action. And the best part is, it’s what voters from both parties want.
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