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<< Back to All NewslettersFrom the Halls of Congress: June 26, 2020
from
The Bengal Bite
June 26, 2020
A vast majority of Americans support the legalization of cannabis. With over 200 million Americans living in states where cannabis is legal and with the industry already generating nearly $1.5 billion in annual federal tax revenue, one might wonder why cannabis is still illegal.
Historically, the industry's progress at the federal level has been blocked in "the halls of Congress" by the Senate, though this week's headlines regarding the Department of Justice (DOJ) suggest that the Senate may not be the only organization in Washington putting up roadblocks for the industry.
Over the long term, we believe that overwhelming national support for cannabis combined with the industry's ability to generate tax revenue and create jobs will pressure Washington to relax federal prohibition on cannabis.
The Bengal Capital Team
DOJ whistleblower: Bill Barr improperly targeted marijuana companies with investigations because he 'did not like' their business
LawandCrime.com
OUR TAKEAWAY
A DOJ whistleblower alleges that Attorney General Bill Barr improperly targeted cannabis M&A transactions due to his personal dislike for the industry. We are optimistic that this federal whistleblower complaint could stimulate cannabis M&A, given how politically difficult it would be for the DOJ to intervene in light of this recent political interference.
Cannabis case challenges non-deductibility of expenses
AcountingToday.com
OUR TAKEAWAY
Harborside in California, founded by industry veteran Steve DeAngelo, is continuing its challenge of the federal tax code 280E, which the company's legal team says is unconstitutional and runs afoul of the 16th Amendment.
Justice Department blocks 'essential' marijuana workers from bankruptcy protection
WallStreetJournal.com
OUR TAKEAWAY
"People working in the marijuana industry will face challenges if they file for bankruptcy until Congress addresses the conflict with federal drug laws," said Judge Reomero of the U.S. Bankruptcy Court, "Unfortunately, the courts find themselves in a game of whack-a-mole."
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<< Back to All NewslettersThe Rising Tide of Legalization: June 19, 2020
from the bengal bite
June 19, 2020
With the protests that have been roiling the United States these past few weeks, the country has been faced with difficult questions about the criminal justice system. Given its illegal status at the federal level, cannabis has been in direct conflict with the criminal justice system since it was made illegal in 1937. Questions about reform have been at the forefront of the industry for generations, and those questions have only become more complicated by the "rising tide of legalization" beneath the industry. U.S. cannabis consumers overwhelmingly support criminal justice reforms (see this week's first article below), and with a vast majority of Americans in support of cannabis legalization, questions around reform will only become more pressing, especially as state and local governments face pressure to tap the industry for the tax revenue and jobs created by legalized cannabis.
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