Jeff Sessions Greenlights Federal Crackdown on Marijuana
How will it impact Colorado's marijuana industry?
The Associated Press reported that Attorney General Jeff Sessions is rescinding the Obama-era policy that paved the way for legalized marijuana to flourish in states across the country, according to two people with knowledge of the decision. Sessions will instead let federal prosecutors decide how aggressively to enforce federal marijuana law, where the substance is legal.
With all the other issues going on in Washington, D.C., it is a bit perplexing. Some say the announcement was more for publicity than anything as California begins selling legal recreational marijuana.
Federal prosecutors have their hands full already, so it is unlikely they will actively go after legal marijuana producers. However, it is curious that Sweet Leaf, one of the largest marijuana shops recently closed for looping – when a customer goes in multiple times to buy marijuana and you can only sell a specific amount to each customer, so selling to the same customer twice is illegal.
THE GENIE IS OUT OF THE BOTTLE
There is no going back in marijuana regulation; if anything, more states are leaning toward relaxing their pot policies. Furthermore, the revenue generated from marijuana is impressive in and of itself.
WHAT TO DO?
If you are involved in the industry, banking will continue to be challenging. Much of the institutional money will likely pull back in the short term until there is greater clarity.
From a real estate perspective, ensure you are focusing on general purpose properties so if there is any change, you have a viable option for that investment.