Turning Over a New Leaf: Vice President Harris's Outreach Sparks Hope for Comprehensive Cannabis Reform
A current article in M.J. Moment reflects that the administration, particularly Vice President Kamala Harris's office, actively engages with cannabis policy issues. This engagement, particularly with individuals pardoned for marijuana possession, may indicate a continued interest and potential for further reforms in cannabis policy by the administration.
Vice President Kamala Harris's team has initiated direct dialogues with individuals who have been granted clemency for marijuana possession under President Joe Biden's broad clemency actions. This proactive engagement aims to streamline the Justice Department's certification operations and foster substantive conversations about the future of cannabis legislation. Among those contacted, Chris Goldstein, a figure in cannabis advocacy and a beneficiary of this pardon, recounted his discussions with the Vice President's representatives. Their dialogue spanned the intricacies of his certification and broader issues like the potential for cannabis descheduling and the implementation of expungement. Goldstein underscored the team's adept comprehension and a keen interest in distinguishing between the technicalities of rescheduling versus descheduling cannabis, along with a deep dive into the policy's finer points concerning pardons and expungements. This initiative, though not outrightly addressing the continuous arrests over marijuana possession, underscores the administration's stand against incarceration for such offenses. Furthermore, it brings into focus the larger landscape of cannabis policy evolution, spotlighting legislative endeavors like the Marijuana Opportunity Reinvestment and Expungement (MORE) Act alongside scrutiny over the administration's delivery on decriminalization promises and the current assessments of cannabis scheduling by authoritative bodies like the DEA and HHS. While not committing to definitive policy changes, this outreach signals a forward-moving dialogue with those impacted by previous cannabis laws. It mirrors a commitment to revisiting and potentially reforming cannabis policies, marking a hopeful chapter for advocates and individuals affected by past legislation.
Germany's Path to Marijuana Legalization: Navigating the Legislative Landscape and Public Opinion
The legislative process to legalize marijuana in Germany is moving forward, with the bill officially scheduled for discussion in the Bundestag next week. This step indicates that the government's plans to enact the reform by April are on track. The forthcoming vote in the Finance Committee is crucial, but it will also require approval from the Health Committee and the full legislative chamber to become law. The bill, initially introduced by Federal Health Minister Karl Lauterbach and later revised to address concerns primarily from the Social Democratic Party (SPD), aims to regulate marijuana use among adults. It includes provisions for expanding monitoring and reporting on the illicit market, increasing home possession limits, and removing jail time for minor possession offenses. The implementation plan allows for staggered legalization, beginning with possession and home cultivation and establishing social clubs for distribution. Despite the progress, opposition remains, notably from the Christian Democratic Union and Christian Social Union (CDU/CSU), who have filed a motion to stop the legalization. The Bundesrat, representing German states, has also attempted to block the reform but was unsuccessful. The bill's journey through the legislative process has seen delays and revisions, aiming to address concerns about youth consumption and the impact on public health. The German government is taking steps to ensure that the reform aligns with EU regulations and international obligations, including a proposed campaign to educate the public about cannabis risks. This move towards legalization reflects a broader trend of shifting attitudes towards marijuana in Germany and other European countries, with many advocating for regulated access to cannabis for adults.
The High Cost of Banking Hesitance: Lessons from the Eaze Fraud Case
In the world of state-legal cannabis, a recent court decision has sent shockwaves through the industry and the financial services sector alike. The Eaze fraud case, involving a hefty $17 million fine for fraudulent electronic payment processing for cannabis purchases, highlights a significant and ongoing challenge: the reluctance of financial companies to embrace the cannabis market.
A Scheme Unraveled
The case centers on a sophisticated scheme devised to circumvent the banking industry’s hesitance to process cannabis transactions. Hamid Akhavan and Ruben Weigand were convicted of tricking banks and credit card companies into processing these payments by disguising them as unrelated transactions. This approach was necessitated by a stark reality. Despite growing legalization, cannabis remains federally illegal in the U.S., leading major credit companies like Visa and MasterCard to prohibit its purchase using their cards.
The Financial Industry's Cold Shoulder
The financial sector's wariness stems from cannabis's classification as a Schedule I controlled substance at the federal level, putting banks and credit companies at risk of running afoul of money laundering laws. This legal gray area has led to a peculiar situation where a legally operating industry at the state level is largely shunned by the national and international financial system.
Repercussions and Reflections
The fallout from the Eaze case extends beyond the individuals involved, casting a long shadow over the cannabis industry's relationship with the financial sector. MasterCard's directive last summer, ordering institutions to stop allowing its debit cards for cannabis purchases, and Visa's similar warnings are indicative of a broader trend of financial institutions distancing themselves from the cannabis market.
The Path Forward
Despite these challenges, the case also highlights the pressing need for innovative and compliant financial solutions. Some in the cannabis industry remain optimistic, working diligently to develop payment processing solutions that adhere to legal and regulatory standards while offering a lifeline to cannabis businesses cut off from traditional banking services. The Eaze fraud case serves as a stark reminder of the complexities facing the cannabis industry in its quest for legitimacy and financial inclusion. It underscores the importance of regulatory clarity and the need for financial institutions to adapt to a changing landscape. As the industry continues to grow, developing secure, transparent, and compliant financial services will be paramount to its success.
