Kash Patel is out at the ATF, what does it mean for cannabis?
Recent changes at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the departure of Kash Patel as head of the ATF under the current administration could have significant implications for the cannabis industry. These developments come amidst broader shifts in federal drug policy and enforcement priorities. What does the change at the ATF mean for cannabis?
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The ATF’s role in regulating substances like alcohol and tobacco indirectly intersects with cannabis regulation, particularly as cannabis legalization expands across states. Under Trump’s administration, there has been a push to streamline federal agencies and reduce bureaucracy, which could lead to changes in how the ATF interacts with cannabis-related enforcement. If the ATF focuses more on traditional priorities—such as firearms and alcohol—its involvement in cannabis enforcement may diminish, potentially reducing federal oversight on cannabis businesses. However, this shift could also leave regulatory gaps that states must address independently
Kash Patel’s withdrawal from the agency leadership removes a figure who had proposed significant restructuring within federal law enforcement.
The DEA’s anticipated rescheduling of marijuana from Schedule I to Schedule III remains a pivotal development for the cannabis industry. This change would ease restrictions on medical research, enable tax deductions for cannabis businesses, and improve banking access. Combined with Trump’s general support for cannabis rescheduling and potential SAFE Banking Act advancements, these reforms could foster growth in the sector.
RELATED: Economics Puts Pressure On The Feds To Move on Marijuana
What is interesting is as House Speaker Mike Johnson (R-LA) and other fight against cannabis, the public is moving toward it. And all studies show the public, primarily the younger generations, are slowly moving away from alcohol. Beer sales have continued to fall since marijuana legalization. Only time will tell if the feds fall in step with the public.
