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<< Back to All NewslettersFrom the Halls of Congress: August 7, 2020
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The Bengal Bite
August 7, 2020
In our previous Capitol Hill update, we at Bengal Capital shared our long-term view that popular pressure on Congress will ultimately lead to a relaxation of the federal prohibition on cannabis.
Headlines of the past week only reinforce our view as the US House took steps to protect state cannabis laws, the FDA issued cannabis research guidelines, and the Senate introduced a bill to decriminalize cannabis.
With a November election on the horizon and the general chaos of 2020, it remains uncertain whether significant cannabis reforms will pass this year, but we see the continuous stream of positive news emerging “From the Halls of Congress” as a massive tailwind for the industry.
The Bengal Capital Team
House votes to protect state marijuana laws from federal interference
MarijuanaMoment.net
OUR TAKEAWAY
A bipartisan amendment introduced by Representatives Earl Blumenauer (D-OR), Barbara Lee (D-CA), Tom McClintock (R-CA), and Eleanor Holmes Norton (D-DC) to prevent the Department of Justice from using its funds to impede the implementation of cannabis legalization laws was just passed by the House of Representatives.
Sen. Tina Smith introduces marijuana reform bill focused on health, civil rights
Fox9.com
OUR TAKEAWAY
Senator Tina Smith (D-MN) filed a new bill this week titled “The Substance Regulation and Safety Act.” This bill would deschedule cannabis and require the US Department of Health and Human Services to develop guidelines for cannabis analogous to those for tobacco.
Cannabis industry awaits US House vote on MORE Act
CannabisBusinessTImes.com
OUR TAKEAWAY
Industry sources say that the House of Representatives is poised to pass the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act this fall. This legislation would decriminalize and deschedule marijuana on a federal level by removing it from the Controlled Substances Act.
FDA releases guidelines for cannabis-related research, but CBD will have to wait
MarketWatch.com
OUR TAKEAWAY
The US Food and Drug Administration released preliminary guidance on cannabis-related clinical research, outlining how companies seeking approval of drugs that contain cannabis or its derivatives must follow the traditional drug review and approval process involving clinical trials. The agency is still working on rules for products that contain the cannabis ingredient CBD; the 2018 Farm Bill legalized hemp but not CBD, and the FDA continues to do its due diligence on CBD while the public awaits guidelines on that compound.
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<< Back to All Newsletters"Canna"nomics: July 30, 2020
from the bengal bite
July 30, 2020
In our global economy, a robust infrastructure exists to facilitate the supply, demand, and flow of goods. Supply chain finance, dedicated software, and lean manufacturing are some of the common tools that keep the established economy moving but have yet to be implemented at scale in cannabis. Given the nascent stage of the cannabis industry’s development, accepted rules of economics do not yet quite apply, leaving the sector to sort out its own laws of “canna”nomics. That said, the rapid growth of legal cannabis has spurred the development of “traditional” tools of commerce within the cannabis industry. Just last week, the industry’s largest supply chain finance deal was completed (article #2 below), and a new startup secured financing to train and place cannabis workers (article #3 below). As the infrastructure to support cannabis grows, we believe the economic impact of this industry will continue to multiply. We see the complex “canna”nomics behind the industry as a driver for growth and innovation.
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