Do U.S. Cannabis Industry Investments Face Risk Of Federal Enforcement Action? Theoretically Yes, Practically No
Guest post by David Wenger
The US cannabis industry is intriguing to investors. But marijuana remains a Schedule 1 drug under the United States Controlled Substances Act (CSA). Does that mean that investments in the industry face risk of a federal enforcement action against an industry business?
Federal Interference and Legislative Protection
Nationwide, between 2002 and 2012, the federal government processed more than $1 billion in marijuana-related asset forfeitures. California had the largest share, accounting for more than $180 million. Serious tension existed between federal agencies and local law enforcement seeking to benefit from the proceeds of forfeitures, on the one hand, and a burgeoning municipal-licensed medical cannabis industry (state-level licensing began taking effect in 2016).
Significant progress on cannabis Prohibition policy came