What's going on with Jeff Sessions?
What’s going on with Sessions?
If you’re in the cannabis industry, invested in the industry, or just interested in what’s going on, you’ve no doubt heard the various statements by recently elected Attorney General Jeff Sessions. There’s a lot of speculation about what’s going to happen to the legal cannabis industry and how each state will respond if there’s any changes at a federal level. Let’s take a look at some of Session’s comments, state’s reactions, and what this means from an investment perspective.
With the nomination of Jeff Sessions and his conservative Alabama background, there was a lot of fear in the legal cannabis industry. Though there’s been no federal crackdown, there has been some comments comparing cannabis to heroin and statement’s such as “I’m not sure we’re going to be a better, healthier nation if we have marijuana being sold at every corner grocery store.”1 (ignoring the current laws, state by state laws with grocery stores and alcohol, etc.). Another quote that hit hard on the industry was “Good people don’t smoke marijuana.” With statements such as these, it’s no wonder there was fear about a federal crackdown.
Since the initial comments, there’s been a lot of movement in a more positive direction for the industry. Sessions has admitted parts of the Cole Memo to be valid, saying, ““The Cole memorandum set up some policies under President Obama’s Department of Justice about how cases should be selected in those states and what would be appropriate for federal prosecution, much of which I think is valid. I may have some different ideas myself in addition to that, but essentially we’re not able to go into a state and pick up the work that the police and sheriffs have been doing for decades,” he said at the time.”2. Additionally, Governor Hickenlooper of Colorado has stated he feels the federal government won’t crack down on states that have legalized marijuana in some capacity.
All in all, Sessions has made it clear he’s reviewing the progressive policies from the Obama administration. Whether he makes changes or not, it’s no question that he is not a fan of legal marijuana.
From an industry standpoint, there’s less chatter about what’s going on the federal side than outsiders may think. Much of Colorado is in a “wait and see” attitude, with some encouragement from Governor Hickenlooper’s comments. Alongside these comments, there’s pending legislation to allow grows and retail stores to convert to medical (as opposed to recreational) if a federal crackdown occurs3. Despite the industry’s calm, outside investors have slowed down significantly. Even with the huge win in recent elections and 8 states passing new cannabis laws, investors have been more on pause to see just where Sessions stands.
Without a crystal ball, there’s no telling what AG Sessions or the Trump administration will do regarding the legal cannabis industry. One thing is for sure, it’s always an exciting time to be invested in the industry whether it’s your money, your job, or just some time each day reading what is going on.
More posts to come with insight from the cannabis industry. Thanks for reading and stay educated!
2: https://www.newsweek.com/marijuana-legal-states-colorado-jeff-sessions-john-hickenlooper-591918
3: https://www.pbs.org/newshour/rundown/marijuana-colorado-strategy-pot-crackdown/