What the 2024 Election Means for the Cannabis Industry

What the 2024 Election Means for Cannabis Policy Reform

At True Terpenes, we’ve been following the recent election and its implications for the cannabis industry closely. For the first time, both major presidential candidates expressed positive stances on cannabis, generating hope for progress. However, with Vice President Kamala Harris not re-elected and a Republican-leaning Congress, the pathway to federal legalization now faces new uncertainties.

Executive Branch Insights

The Biden Administration made strides in cannabis reform, with the Health and Human Services (HHS) and Drug Enforcement Administration (DEA) exploring a rescheduling of cannabis to Schedule III. This change would ease financial barriers for cannabis businesses, improving access to financial institutions and potentially removing the burdensome 280-E tax treatment that currently impacts cannabis companies. This rescheduling could drive significant growth and stability in the industry.

Vice President Kamala Harris had pledged to federally legalize cannabis if re-elected, which had sparked optimism in the industry. However, with her exit, this commitment is now uncertain. The concern is that a Republican-led administration may deprioritize federal legalization, potentially slowing the momentum.

Former President Donald Trump’s stance on cannabis has been mixed but increasingly positive. Leading up to the election, he supported Florida’s Amendment 3 and acknowledged the benefits of a medical cannabis industry for patients. His comments on the national trend toward legalization suggest he’s open to reform, though his position is less definitive than Harris’s.

Legislative Branch Changes

The 2024 election also shifted the legislative landscape, with the Senate now under Republican control and the House likely to follow. This shift could impact the viability of cannabis legislation currently being debated. While Republican-led chambers may slow federal reform efforts, strong bipartisan support for cannabis remains, and there’s still room for progress. As public opinion continues to favor reform, Congress may still advance industry-supportive legislation.

Key Federal Developments to Monitor

Our Government Affairs team is watching several critical federal developments that could shape the future of cannabis regulation:

New Cannabis Legislation: With growing public support for cannabis reform, we anticipate new bills, including both reintroduced classics and fresh proposals addressing long-standing industry issues. Some current bills have already garnered Republican support, reflecting a bipartisan approach. For example, the SAFER Banking Act (previously the SAFE Banking Act) has received considerable Republican backing in both the House and Senate. Additionally, the Marijuana 1-to-3 Act, which aims to reschedule cannabis, was introduced by Republican Representative W. Gregory Steube. This bipartisan interest signals a hopeful outlook for continued progress on cannabis reform.

DEA Rescheduling Efforts: The DEA has selected 25 participants to testify in its ongoing review of cannabis rescheduling, though hearings are postponed until 2025. Historically, the DEA has preferred strict control over cannabis. However, with HHS’s support, there’s now a strong precedent for a shift to Schedule III. This diverse panel includes representatives from law enforcement, medical professionals, industry stakeholders, and advocacy groups, ensuring a comprehensive discussion on rescheduling. Here is the list of the 25 selected participants:

Shane Pennington – Administrative law attorney representing Village Farms International
Aaron Smith – CEO of the National Cannabis Industry Association
Michelle Rutter Friberg – Chief lobbyist of the National Cannabis Industry Association
Dr. Chad Kollas – Representative of the American Academy of Hospice and Palliative Medicine
John Jones – Treasurer and director of Cannabis Biosciences International Holdings
Robert Head, Corey Burchman, Darinia Douchi, and Victor Bohm – Representatives of Hemp for Victory
Erin Gorman Kirk – Connecticut cannabis ombudsman
Ellen Brown – Chair of the Massachusetts Cannabis Advisory Board’s research subcommittee
Shanetha Lewis – Executive director of Veterans Initiative 22
Nicholas Garulay – President and CEO of The Doc App (My Florida Green)
Jason Castro – In-house counsel for My Florida Green
Katy Green – Lobbyist with Platinum Advisors, representing The Commonwealth Project
Ari Kirshenbaum – Professor of psychology at Saint Michael’s College
Jo McGuire – Representative of the National Drug and Alcohol Screening Association
Patrick Philbin – Representative of Smart Approaches to Marijuana
Dr. Roneet Lev – International Academy on the Science and Impact of Cannabis
David Evans Sr. – Counsel for Cannabis Industry Victims Educating Litigators
Dr. Kenneth Finn – Drug-rehabilitation specialist
Jennifer Homendy – Chair of the National Transportation Safety Board
Dr. Phillip Drum – Doctor of pharmacy
Mike Hilgers – Nebraska Attorney General, involved in litigation to keep medical marijuana off the state ballot
Representative from the International Association of the Chiefs of Police – Name not specified
Marshall Fisher – DEA of Federal Narcotics Agents
Dr. Natalie Hartenbaum – American College of Occupational and Environmental Medicine
Sue Thau – Community Anti-Drug Coalitions of America

Hemp Legislation and the Farm Bill: With new leadership in Congress, the Farm Bill process may be revisited. There is significant public opposition to the Miller Amendment, which proposes banning many hemp products. At True Terpenes, we strongly favor regulating hemp but believe that prohibition is not the solution. History has shown that banning products often drives them into illicit markets, where there is no ability to enforce marketing restrictions, rigorous testing standards, or safeguards to protect minors. The future of hemp will likely be shaped within the Farm Bill, but it may also arise in broader legislation, offering a chance for sensible regulation that prioritizes safety and accessibility over restriction.

Market Implications

The election has had immediate implications for the cannabis market, affecting not only publicly traded companies but also national and Florida-based brands that viewed Florida as a key driver of growth. At True Terpenes, we supported Amendment 3, recognizing it as a critical opportunity to expand medical cannabis access and fuel industry growth. Although the amendment wasn’t perfect, it represented a meaningful step forward for the industry in terms of increased access and growth potential. Unfortunately, the amendment’s defeat has impacted the plans of many companies that anticipated access to Florida’s limited-license market. While this setback may affect the short-term outlook for some businesses, it doesn’t necessarily forecast a downturn for the industry. We believe the cannabis industry’s growth potential remains strong despite these fluctuations.

State-Level Momentum and Federal Pressure

With more states moving toward legalization and established markets maturing, pressure is mounting on the federal government to step in. As states continue to implement regulatory systems, the demand for federal support grows. We expect 2025 to be a pivotal year, with agencies like the DEA, FDA, Tax and Trade Bureau, and Congress providing clearer guidance on cannabis’s future.

Of course, we know this story isn’t new—over the years, there have been countless promises and limited progress. But we must remain optimistic. It’s no longer a matter of “if” but “when” these reforms will take place. This alignment of state-level progress and growing federal interest suggests that real change is within reach, setting the stage for a pivotal moment in the industry.

Looking Ahead

Although this election didn’t provide a clear path to federal legalization, the groundwork for change remains strong. With Congress discussing cannabis reform and numerous states adopting regulatory systems, the federal government has a unique opportunity to shape the industry over the next few years.

True Terpenes will continue to monitor these developments, advocate for sensible policies, and keep our partners informed on the impact of regulatory changes on our industry and products.

Brace Yourself: The Waiting Game Continues

The election results may not provide the straightforward path to federal legalization many hoped for, but momentum remains strong. State-level legalization efforts and evolving public opinion have created an environment ripe for federal action. We are committed to staying informed, proactive, and engaged, providing timely updates as new information unfolds. This is an exciting time for the industry, and True Terpenes is prepared to lead the way forward. If you’d like to collaborate or discuss these developments further, feel free to contact us—we’re here to work together to shape the future of cannabis reform.