Cresco Labs Washington D.C. Expert Discusses Key Legislative Changes in Cannabis Industry
The TDR Three Key Takeaways regarding John Sullivan of Cresco Labs Discusses Key Legislative Changes in the Cannabis Industry:
- John Sullivan, Executive Vice President of Government Relations at Cresco Labs (CSE: CL, OTCQX: CRLBF), offers valuable insights directly from Washington, DC.
- He said: “What some fringe members of Congress are still against cannabis are trying to do will not stand in the way of rescheduling getting done.
- Regarding the SAFER Banking Act, he said that he has talked to a lot of Republican members of Congress that have said to come back to me when cannabis is in Schedule III.
John Sullivan, Executive Vice President of Government Relations at Cresco Labs (CSE: CL, OTCQX: CRLBF), had an exclusive interview on TDR Trade to Black on Wednesday to share a cannabis regulatory update from Washington, D.C. Cresco Labs has been very involved in dedicated lobbying efforts. The company spends more on lobbying than any other cannabis company, aiming to influence policy decisions directly. Sullivan emphasizes this commitment, stating, “At Cresco Labs, one of our commitments has been to be one of the most important companies in cannabis, if not the most important company. And you can’t be that without being in Washington, D.C., and being on the Hill pretty much daily, which we are.”
This commitment isn’t just for appearances; it’s a strategic decision to ensure the company’s concerns are heard. Sullivan’s frequent presence in Washington underscores the importance of ongoing advocacy. “We are just there constantly doing the drumbeat. We’re also in the White House talking to the administration, working with members of the cabinet,” he says.
A major legislative issue for the cannabis industry is the potential rescheduling of cannabis from Schedule I to Schedule III. This change would recognize the medical benefits of cannabis and reduce its classification alongside drugs like heroin and fentanyl. Sullivan highlights the extensive work behind this initiative: “We’ve been working on this since September of 2021 with the Biden administration. He announced this back in October of 2022. This isn’t new. This is something they’ve been working on. They’ve been working hard on.”
The rescheduling process has received broad support, with over 26,000 public comments, most of them positive. Sullivan is optimistic about the outcome, noting, “We are so far down that road. What some fringe members of Congress are still against cannabis are trying to do will not stand in the way of rescheduling getting done.”
Another critical issue is the Safe Banking Act, which aims to provide cannabis businesses with access to traditional banking services. The current lack of access to these services poses significant operational challenges. Sullivan believes that rescheduling cannabis will pave the way for safe banking legislation. Sullivan said that he has talked to a lot of Republican members of Congress that have said come back to me when cannabis is in Schedule III. They would have a much easier time going back to their constituency with a federally recognized medical benefit to cannabis.
Passing safe banking legislation would mark a significant milestone for the industry, enhancing financial stability and operational efficiency. Sullivan is confident about this legislative progress, citing collaboration between key lawmakers. Sullivan mentioned that they have very vocal advocates on both sides. Senator Daines on the Republican side, Chuck Schumer on the Democrat side.
Despite the legislative progress, the cannabis market faces its own set of challenges. Trading volumes are currently low, reflecting the summer slowdown and broader market conditions. However, public support for cannabis legalization remains strong, which is crucial for driving legislative change. Sullivan points out, “We continue to push for Congress to change that. And it’ll take an act of Congress to really change cannabis policy long term.”
The upcoming elections and potential political shifts add another layer of complexity. Anti-legalization groups are actively trying to delay the rescheduling process, hoping for a political shift that could derail the progress made so far. Yet, experts like Sullivan remain confident that these efforts will not succeed. “The odds of some delay of this are so remote, especially when it comes to the Biden administration listening to the smart approaches to marijuana,” he says.
Cresco Labs is advocating for a regulated and legal cannabis market, anticipating legislative changes that could stabilize and expand the industry. With growing public support and legislative momentum, the future of the cannabis industry appears promising.
