Insiders in the cannabis industry may be tired of trying to read their crystal ball and determine if federal reform is coming under the Trump administration. But it does not appear the fog will clear anytime soon.
This is despite the fact that Trump nominated a marijuana champion to be his drug czar, and ads for marijuana-funded television ads are running at Mar-a-Lago. Trump selected former journalist Sara Carter, who now heads his Office of National Drug Control Policy. He praised Carter in an Instagram post for her coverage of the “Fentanyl and Opioid Crises.”
Marijuana Moment published an article this week that Carter called federal legalization of cannabis “fantastic”, and stated she had no objections to the practice as long as it is “monitored”.
Carter’s general support for marijuana contrasts sharply with the positions of other Trump appointees. These include Attorney General Pam Bondi (who opposed legalizing medical marijuana in Florida) and Terrance Col, Trump’s nominee to lead his Drug Enforcement Administration.
Carter could be aligned with Health and Human Services Sec. Robert F. Kennedy Jr. in that he was vocally for marijuana reforms before joining Trump’s cabinet, but has since softened his stance.
Carter’s past vocal support for marijuana and other Schedule I drugs will probably have very little impact. It is literally against federal laws that Carter, in her role as Drug Czar, would support reclassification or legalization. It’s not clear what her appointment means for the cannabis industry.
CNN reported that, while the Trump administration remained quiet on this topic, his transition team tried to slip a SAFE Banking Act-like provision into an omnibus bill of spending in December. The attempt was made after Trump’s campaign pledge last autumn, where he promised to vote for the Florida ballot question to legalize marijuana recreationally (the measure failed).
The rescheduling process – which would deliver billions in tax savings to the U.S. marijuana industry if it’s ever completed – has been stalled for months since Trump took office, and there’s not yet any signs it’ll be put back on track. CNN was told by a White House spokesperson that, “no actions are being considered right now” in regards to marijuana reform. Trump himself did not mention cannabis on his social media posts about Carter.
American Rights and Reform PAC, a cannabis-backed political action group, created a pair TV ads which will air in Washington, D.C., and West Palm Beach, the area that includes Trump’s Mar-a-Lago, a resort where he is known to spend a great deal of time.
CNN reported that the PAC spent over $1 million on these ads. Curaleaf Holdings (CURA:CA) (TSX: CURA)(OTCQX CURLF), which is a company owned by Curaleaf, also contributed to their cost. CNN reported the PAC’s spending of over $1,000,000 on these ads. Curaleaf Holdings Inc. (CURA :CA) (TSX : CURA)(OTCQX : CURLF) is believed to have contributed towards the cost. Both ads argue that Trump will benefit from federal marijuana reform.
One of the advertisements echoes “This is America First,” a Trump-related political slogan. President Trump showed courage by signing Right to Try to heal American patients. Let’s do it again. “Reschedule marijuana and put American First.”
Given how mercurial Trump can be depending on who’s bending his ear – and the variety of opinions in his administration on the topic of marijuana – the approach may just work. The industry is left with little to lose at this stage.