Shavo Odadjian, founder of cannabis brand 22Red and bassist for the heavy metal band System of a Down welcome the recent announcement from President Joe Biden that marijuana will be rescheduled from a Schedule I to a Schedule III drug under federal law. Odadjian, a long-time cannabis advocate and entrepreneur, shared his reaction in an exclusive statement to Benzinga Cannabis, emphasizing the positive implications for both the industry and consumers.

"It's a thrill to see the US government making real changes in how cannabis is treated. I've been in the business for years and a consumer for decades," Odadjian said. He highlighted the broader benefits of this reclassification, noting, "Going from Schedule I to Schedule III will benefit not just those of us who are trying to share the plant in its peak form, but for consumers who want options, quality, and greater ease in getting their hands on it in general."

The Biden administration's move marks a significant shift in federal cannabis policy. The Justice Department will post proposed rules to this effect in the Federal Register, initiating a 60-day public comment period. This action is seen as a step toward rectifying long-standing inequities and dismantling barriers that have hindered the cannabis industry.

Odadjian, who has built a successful cannabis brand with 22Red, views this development as a critical milestone. "We still have a long way to go, especially from a justice standpoint from the war on drugs, but this is a huge milestone," he said. His sentiment echoes the relief and optimism expressed by many in the industry who have faced stringent regulations and limited business opportunities under the current federal scheduling.

Cannabis companies and legalization advocates have lauded President Biden's decision. David Klein, CEO of Canopy Growth (NYSE:CGC), described the change as a major leap forward, emphasizing its potential to correct historical injustices and foster industry growth. Similarly, Kim Rivers, CEO of Trulieve (OTC:TCNNF), celebrated the move as historic, underscoring its importance for federal cannabis reform.

The rescheduling is expected to have significant economic impacts, particularly in terms of taxation. With cannabis moving to Schedule III, businesses will no longer be subjected to the onerous 280E tax code, which has prevented them from deducting normal business expenses. David Hart, CEO of The Cannabist Company (OTC:CBSTF), highlighted this benefit, noting that it would enable more sustainable operations and greater reinvestment in innovation and community support.

As the cannabis industry looks forward to a more favorable regulatory environment, Odadjian's reaction encapsulates the cautious optimism felt by many. The journey toward full legalization and comprehensive justice reform continues, but the rescheduling of marijuana marks a pivotal step in that direction.

Photo courtesy of 22Red.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.