DEA Updates CBD Code

December 26, 2016
First Harvest Financial

The new year could bring even greater tension between the growing marijuana industry and the federal government, specifically the Drug Enforcement Agency.

According to a report in the Federal Register, the DEA recently established a new drug code for marijuana extracts. Understandably, the news brought about waves of uncertainty and panic for business owners, investors, and supporters of the legal marijuana industry. On the line are millions of dollars for professionals in the industry and peace of mind for the many patients who have sought relief through marijuana products.

When the DEA spoke out on the issue, representatives reassured that this change was in no way a move to re-schedule CBD or to make any sort of changes in regulation for hemp. Instead, the agency claims, it is attempting to better comply with international treaties and better track the research of marijuana extracts.

Still, with a new administration soon making its way into office, many involved in the marijuana industry remain worried about the DEA’s latest decision.

“I think the DEA is testing how this president’s administration will respond to the marijuana issue,” said Attorney Michael Cindrich. “A push by the DEA to both regulate this and other related products is testing the waters as to the level of control.”

Those who have been in the industry for years may remember that this DEA initiative began in 2011, but was not finalized until mid-December. The timing of the ruling is not only interesting, but may also have made CBD a front-burner issue for the new administration.

The ruling is cause for concern for the many Americans using medical marijuana to cope with chronic medical conditions, like epilepsy, Parkinson’s, and MS, to name a few. Marijuana contains two main compounds—CBD, believed to have medical value, and THC, which creates the “high” effect. CBD can be extracted from both marijuana plants and hemp plants.

On the DEA’s new ruling, Mark Malone, Executive Director of the Cannabis Business Alliance, said, “This is a huge step backwards for cannabis prohibition and especially for patients who live in states without established medical cannabis laws.”

While the DEA cannot create new laws, such administrative changes can still have great impacts on the industry and the mentality of federal officials. For those in the industry, the change is unwelcome and some have CBD producers have even called the move an “overstepping by the DEA.” For more information regarding the DEA and CBD Code, [Click Here].