Author: Steven Schain
[ad_1] Mandating “true owners’ identity disclosure” to prevent using shell companies to conceal criminal revenue, the Corporate Transparency Act, 31 U.S.C. Section 5336, et. seq. (CTA) creates myriad cannabis industry headaches. The CTA requires business entities to file information on their “beneficial owners” with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, which, in turn, may disclose it to domestic and foreign law enforcement agencies, prosecutors, judges and financial institutions. Because it imposes onerous reporting requirements, impedes entity formation and modification, encumbers investors, and enhances investigative and prosecutorial likelihood, the Corporate Transparency Act may stifle the cannabis industry’s…
[ad_1] With a feud raging over what’s a regulated “intoxicant,” billions of cannabis dollars hang in the balance. Forming America’s sixth-largest crop yielding 48.8 million pounds of flower and projected to generate $33.5 billion in 2023 legal sales, marijuana’s plunging price-per-pound and the availability of cheaper, unregulated hemp-derived tetrahydrocannabinol (THC) products is thwarting the cannabis industry. Whether cultivated indoors, outdoors or in a greenhouse, over the past two and a half years cannabis wholesale price-per-pound has dropped 40% nationally curtailing production and crashing businesses across legalized marijuana’s supply chain. Further, mirroring legalized marijuana’s THC’s (Delta-9 THC) effects, hemp-derived THC (Delta-8 THC) requires…
[ad_1] By Steven Schain Although the final decision rests with the DEA, if cannabis is reclassified to Schedule III, marijuana growers, processors, transporters or sellers (marijuana-related businesses or MRBs) will cease being encumbered by onerous operating and taxing obstacles to become significantly more profitable, federally funded cannabis research will finally occur, and investment in marijuana-related businesses should soar. Causing a day-long, double-digit cannabis stock surge peaking at 40.56%, on Aug. 30, the U.S. Department of Health and Human Services (HHS) recommended that the U.S. Drug Enforcement Administration (DEA) reschedule marijuana from Schedule I to Schedule III of the Comprehensive Drug…
[ad_1] By Steve Schain Causing a day-long, double-digit Cannabis stock surge peaking at 40.56%, on August 30, 2023, the U.S. Department of Health and Human Services (“HHS”) recommended that the U.S. Drug Enforcement Administration (“DEA”) reschedule Marijuana from Schedule I to Schedule III of the Comprehensive Drug Abuse Prevention and Control Act of 1970, 21 U.S.C. §§ 801, Et. Seq (1970) (“Controlled Substance Act”). Although the final decision rests with the DEA, if Cannabis is reclassified to Schedule III, Marijuana growers, processors, transporters or sellers (“Marijuana Related Businesses” or “MRBs”) will cease being encumbered by onerous operating and taxing obstacles…
[ad_1] By Steven Schain While preferable to its predecessors, the SAFE Banking Act fails to provide legal marijuana growers, processors, transporters or sellers (marijuana-related businesses or MRBs) with the access to banking that every other legitimate industry enjoys. Is the third time a charm? Following failed 2019 and 2021 attempts, both the House of Representatives and Senate reintroduced the Secure and Fair Enforcement Banking Act of 2023 (SAFE Banking Act) on April 26. While preferable to its predecessors, the SAFE Banking Act fails to provide legal marijuana growers, processors, transporters or sellers (marijuana-related businesses or MRBs) with the access to…