The Cannabis Administration and Opportunity Act was introduced
in the Senate earlier this month by Senator Chuck Schumer (D-NY).
The bill would remove federal prohibitions on the manufacture, sale
and possession of marijuana, and would also dramatically alter the
current regulatory scheme for cannabidiol (CBD).
Although recreational marijuana is now legal in 19 states and Washington, D.C.,
marijuana is still a Schedule 1 controlled substance under the
United States Controlled Substances Act (CSA), no different than
cocaine, and it is therefore a federal crime to sell and possess
marijuana even where legal under state law.
Hurdles for the Marijuana Industry
Beginning with the Obama administration, the federal government has
declined to enforce the CSA for marijuana that is sold in
compliance with state law, but the CSA has nonetheless been a drag
on the legitimate marijuana industry. Due to money laundering
concerns, major financial institutions have refused to
