Trump Administration Taking Step That Could Threaten Marijuana Legalization Movement
This article by Charlie Savage and Jack Healy for the New York Times may be of interest to subscribers. Here is a section:
The Trump administration on Thursday will free federal prosecutors to more aggressively enforce marijuana laws, effectively threatening to undermine the legalization movement that has spread to six states, most recently California.
The Justice Department is expected to rescind an Obama-era policy of discouraging federal prosecutors from bringing charges of marijuana-related crimes in states that had legalized sales of the drug.
It was not immediately clear whether the administration intends to carry out a federal crackdown on marijuana dispensaries, or is merely rattling its saber.
The Associated Press first reported the announcement, and a government official familiar with the matter confirmed that the change would be announced later on Thursday.
This announcement acted as a catalyst for profit taking on cannabis related shares today as it introduces an additional risk to the market. Nevertheless, it also highlights the potential for a confrontation between the states and the Federal government about what is and is not permissible and who has sway over what can be consumed. Until the situation is resolved the potential for volatility is non-trivial.
Back to top