In an unprecedented move, President Joe Biden brought cannabis reform to the forefront during his recent State of the Union address, marking a historic moment for cannabis advocacy in the United States
Amid divided public reaction, Biden declared his commitment to decriminalizing cannabis possession, stressing: “No one should be jailed simply for using it.”
Industry Insight: Steering Change
Following Biden’s groundbreaking announcement, industry experts are weighing the potential consequences for the cannabis business. William McKenzieCEO of Left Coast Holdings and imminent Benzinga Cannabis Capital Conference speaker, expressed mixed feelings about the reprogramming efforts.
These federal changes could reshape the industry landscape, especially for traditional growers and newcomers, he says.
“There is a lot of speculation about whether rescheduling would benefit operators or pave the way for pharmaceutical giants to dominate the cannabis industry,” McKenzie said.
McKenzie, a veteran in cannabis cultivation since 2006, highlighted the critical role of section 280E of the IRS code in stifling the profitability of the cannabis business, suggesting that any move to relieve this burden could be a turning point for the industry.
Capital and technology: the future of cannabis
The conversation with McKenzie also touched on the significant obstacles facing cannabis companies, particularly the scarcity of capital. “The biggest obstacle for startups in our field is the terrible lack of funding. Traditional financial avenues, which remain closed due to current federal laws, are crucial to survival and expansion,” McKenzie explained.
Additionally, McKenzie predicts that federal reprogramming could unlock new technological advances in the industry, as major tech companies may feel more comfortable investing in cannabis. This could accelerate innovation and improve manufacturing processes, ultimately benefiting the consumer.
Adapt to legal changes
Reflecting on his own company, Left Coast Holdings, McKenzie shared how it adapts to the changing legal and competitive environment by focusing on its strengths in cultivation and manufacturing. This strategic pivot highlights the need for agility and foresight in an industry on the cusp of significant legal change.
As the cannabis industry finds itself at a crossroads, with potential federal reform on the horizon, stakeholders like McKenzie are cautiously optimistic, recognizing the challenges and opportunities ahead.
THE Benzinga Cannabis Capital Conference will return to Florida at a new location in Hollywood on April 16 and 17, 2024. The two-day event in The Diplomatic Beach Resort it will be an opportunity for entrepreneurs, large and small, to network, learn and grow.
Renowned for its trend-setting capabilities and influence on the future of cannabis, mark your calendars for this conference to be the cannabis world’s event of the year. Get your tickets now bzcannabis.com – Prices will increase very soon!
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