Which Political Party Will Lead The Way?

In a country where adult-use cannabis remains federally illegal but each state has unique laws governing its industry, understanding the current political dynamics and future of the cannabis industry is a daunting task. In today’s hyperpolarized political climate where compromise is rare, cannabis stands out as an issue not clearly divided along party lines, meaning no one knows which party will step up as the torch bearer for legalization in the United States.

Cannabis reform in Congress ended on a mixed note last year, as President Joe Biden signed historic cannabis research legislation while the SAFE Banking Act, which has passed the House of Representatives seven times with broad bipartisan support, failed to pass the Senate once again. SAFE Banking would allow banks to do business with cannabis-related companies, reversing the status quo of operating in cash since cannabis’ status as a Schedule I drug leaves few alternatives.

Central to SAFE Banking’s most recent defeat was a combination of the historical divide on the topic and the fact that the two legislative vehicles it could have been attached to were unrelated, must-pass government spending and defense bills that could not afford to wait for last-minute differences on cannabis banking to be further reconciled. However, while the SAFE Banking package will have to wait for another day, this particular attempt was crafted with Republicans, for the first time, at the table alongside Senate Democratic leaders. This included Republican Senators like Steve Daines (R-MT), Dan Sullivan (R-AK), and Rand Paul (R-KY).

Having such a group at the table to form a cannabis banking package with the idea of getting it passed, not just
just
introduced, is unprecedented. Even with the current focus on regional bank failures that have dominated the news, in the Senate, Democratic Senator Sherrod Brown (D-OH), Chair of the Banking Committee, has already committed to moving on cannabis banking legislation, alongside a cohort of his Democratic colleagues. Democrats aren’t alone, however.

In the Republican-controlled House, Rep. David Joyce (R-OH-14), chair of the moderate Republican Governance Group and the co-chair of the Cannabis Caucus, appears likely to be part of an effort to reintroduce SAFE Banking while Rep. Nancy Mace (R-SC-1) has already indicated she will reintroduce the States Reform Act to place decisions on cannabis in states’ hands.

Rep. Earl Blumenauer (D-OR-3), meanwhile, is prioritizing reform on multiple fronts with an assertive appropriations and legislative strategy, leading the oversight of the administration’s rescheduling efforts, and co-chairing the Congressional Cannabis Caucus, which he founded.

Congressman Earl Blumenauer explained to me the current state of cannabis reform in Congress by saying: “While it is maddening that Congress hasn’t already done this, we are in the strongest position for reform that I’ve ever seen. For the multitudes of cannabis entrepreneurs and operators that I meet regularly with, it can’t happen soon enough.”

Which party will finally break through in cannabis reform at the federal level is anyone’s guess, but torch bearers for the future of cannabis may be at the state level as ballot initiatives have both succeeded and failed throughout the nation.

Maryland and Missouri passed statewide amendments legalizing adult-use cannabis in November. While Maryland’s progressive bona-fides propelling statewide cannabis expansion surprised few, the deeply red politics of Missouri breeding successful cannabis reform bucked the status quo, as fellow conservative strongholds Arkansas, North Dakota, and South Dakota all rejected similar initiatives to expand their cannabis industries in 2022.

Maryland may soon emerge as a national leader in the cannabis industry, as its newly elected Governor Wes Moore (D) – who is already collecting speculation as a potential presidential candidate after November’s landslide victory – has prioritized cannabis reform from day one of his administration. The first Black Governor of Maryland, 44-year-old Wes Moore stands as good a chance as any at leading the expansion of the cannabis industry.

The picture is not as clear in other states. In Oklahoma, where Republican Governor Kevin Stitt put cannabis legalization to a special election ballot, voters resoundingly voted against it. Governor Stitt may still emerge as a conservative standard bearer for cannabis issues, however, as his bold actions to combat the illicit market could signal future action on the issue from his administration.

In Ohio, which has become reliably red in recent years, state lawmakers have until May 3rd to approve a citizen-initiated proposal to legalize adult-use cannabis, or it will go before the state for a vote in November’s general election. The latter seems likely, as Ohio Governor Mike DeWine (R) and the top Republicans in the state legislature have been vocally opposed to adult-use legalization, meaning it’s unlikely a torch bearer in the cannabis industry will come from Ohio, even with a statewide ballot initiative on the horizon.

Elsewhere in the Midwest, though, Minnesota’s Democratic Governor Tim Walz is emerging as a leader in cannabis reform, positioning it as a main priority for this legislative session, with top legislators already indicating the likely passage of adult-use cannabis this year.

Hawaii is the final state with major cannabis legislation ending, as newly elected Democratic Governor Josh Green has been encouraging the Democratic-controlled legislature to send an adult-use legalization bill to his desk for signing. The future of that measure is unclear, though, as it recently hit a roadblock which will likely prevent major movement on the issue until 2024.

While both parties are finally at the table demonstrating interest in addressing cannabis reform, neither party has emerged as the clear torch bearer for the future of the cannabis industry. One thing is clear, however: it will be another busy year for cannabis in left- and right-leaning states.