Since the emergence of the state-legal cannabis industry, there has been a pointed effort to keep “big business” out of the nascent sector. Most cannabis legislations have prioritized small businesses and equity applicants who were victims of cannabis prohibition in a bid to keep large corporations from coming in and taking over. But these established market players may just be what the industry needs, especially when it comes to federal legalization, and a recent announcement by e-commerce giant Amazon may spark the federal change cannabis players have been anxiously waiting for.
At the start of the month, the American-based retailer made a twofold announcement: it would stop testing its employees for cannabis use, and more importantly, its public policy support team would throw its support behind the Marijuana Opportunity Reinvestment and Expungement (“MORE”) Act. While halting marijuana drug tests will go a long way in reducing the social stigma cannabis users face, especially for medical marijuana patients, it is the second announcement that may have major ramifications for the cannabis industry moving forward.
The MORE Act, which was sponsored by Rep. Jerrod Nadler, would remove cannabis containing more than 0.3% THC (the main psychoactive compound) from the list of Controlled Substances. Additionally, it would expunge the records of individuals with prior nonviolent, cannabis-related charges as well as create social equity programs to give communities that were disproportionately affected by the war on drugs a leg up in the sector.
So how exactly will Amazon’s declaration aid the young but lucrative marijuana industry?
By lobbying, that’s how. Like it or not, big business packs quite a wallop, and Amazon is one of the largest corporations not only in America but also in the world. By throwing its weight around cannabis bills, whether it’s the MORE Act or a banking bill, and lobbying for their passage, the retailer can do more for cannabis at the federal level than nearly all cannabis players combined ever could. When companies such as Amazon and Uber state their support for federal cannabis legislation, it legitimizes the economic potential of what is still a controversial industry in the eyes of the policymakers in Washington, DC.
Not only do these large players in the space have the ability to sit down with these individuals and make their cases, unlike the small to moderately sized businesses that currently make up a large portion of the industry, but they will also show lawmakers that the entities growing, producing and distributing marijuana are known and trusted. That’s not to say that these corporations don’t have their fair share of questionable practices. Additionally, it doesn’t mean that smaller businesses will be completely edged out of the market.
Large-scale commercial producers could coexist side by side with smaller craft producers like they have in the beer scene. However, lawmakers must first pass federal legislation, and corporations such Amazon can help that happen.
Whatever the force that triggers a marijuana policy change at the federal level, sector players including Sonoma Biologics Corp. would get some relief from having to navigate the complexities associated with the variance between state and federal laws.
NOTE TO INVESTORS: The latest news and updates relating to Sonoma Biologics Corp. are available in the company’s newsroom at https://cnw.fm/Sonoma
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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