This report from Bezinga News, publised on 6 November 2024.

Cautiously optimistic is one way to look at former President Donald Trump’s electoral win among cannabis industry leaders, some of whom say they are balancing hope for reforms with concerns over regulatory clarity and state autonomy.

As the industry awaits Trump's direction on cannabis policies, prominent voices highlight what this shift could mean for federal legalization, banking access and the future of psychedelics.

Anthony Coniglio, CEO of NewLake Capital Partners views Trump's recent endorsement of cannabis reforms as a potential tipping point.

"Trump's September endorsement of cannabis reforms sets the stage for potential reform in the upcoming Congress," he said. Coniglio stressed the need for bipartisan collaboration. "To accomplish these goals in a split Congress, it will be critical for politicians to reach across the aisle to find common ground on reforms important to the industry. This is a potential inflection point for the cannabis sector."

Other industry voices expressed frustration with past inaction by the outgoing government.

Michael Sassano, CEO of Somai Pharmaceuticals criticized the Democratic approach to cannabis reform. "The Democrats have used cannabis as a political football for far too long. They had all the opportunity controlling all three houses and could have easily tilted the scale with the DEA reclassification."

Sassano expressed hope. "Trump has always been on the side of business, unnecessary government spending, and even pardoned many cannabis violations. He has the largest possibility of succeeding where all have failed and will likely reschedule and give SAFE banking."

Evan Nison, CEO of NisonCo, placed considerable weight on Trump's upcoming appointments. "If President Trump intends to honor the overwhelming support for cannabis reform, we expect him to select a cabinet ready to act on federal legalization, banking reform, and veteran access. We'll know how seriously he will take his campaign promises based on his appointments."

Tyler Beuerlein, chief strategic business development officer at Safe Harbor Financial SHFS, said, "A Trump Administration will likely place greater emphasis on state autonomy and deregulatory measures, potentially reinforcing a state-led approach to cannabis policy,"

However, Beuerlein warned that "deregulatory policies alone won't address the core banking issues cannabis operators face."

He highlighted the ongoing necessity for bipartisan Congressional support to pass the SAFE Banking Act, adding, "Even with favorable shifts in state policies, the cannabis sector will still operate under complex and sometimes contradictory regulations."

In the psychedelics sector, perspectives are mixed. Ismail L. Ali, director of policy and advocacy at MAPS pointed out that "President Donald Trump demonstrated a mixed approach to drug policy during his first term."

Ali noted Trump's signing of the First Step Act and Right to Try Act, but pointed out his continued reliance on punitive enforcement. "Trump has been neither clear nor consistent on psychedelic research or policy."

Ali cited concerns about how federal ambiguity could impact state policies in places like Oregon and Colorado.

Despite these worries, MAPS is cautiously hopeful. "We remain cautiously optimistic about the possibility of continued funding for psychedelic research through Congress and federal agencies."

Tempered Sentiments

The general sentiment among industry leaders is one of tempered hope.

With Trump's pro-business outlook, there is optimism for regulatory advancements, particularly in federal banking access and potential rescheduling efforts.

Yet, many caution that Trump's deregulatory stance may not be enough to resolve deeply rooted regulatory complexities, especially in finance and interstate commerce.

For the cannabis sector, Trump's endorsement of cannabis reform during the campaign marks an opportunity to finally address long-standing issues, if his administration follows through.

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