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FDA Attorney

Rep. Jeff Sessions (R-Al.). Image source: Jeff Sessions Senate website. There's also concern that President-elect Donald Trump's Attorney General appointee, Jeff Sessions (R-Al.), could clamp down on the freedoms marijuana businesses have enjoyed in legal states. Sessions is a well-known opponent of marijuana's legalization, and were it not for Trump's support of medical marijuana and his expected hands-off approach to legal states, Sessions would likely seek to reestablish federal precedence (i.e., that marijuana is illegal). As long as Sessions is the Attorney General, the likelihood of any federal progress is minimal for cannabis or cannabis-based businesses. Even if Trump gets his way and medical weed is legalized nationally, the marijuana industry's opportunities could still be limited. Rescheduling marijuana to schedule 2 would open the door for strict regulation by the FDA. Aside from controlling the marketing, packaging, growing, and processing of pot, the FDA could also mandate that tightly regulated clinical trials need to be run to determine the medical benefit of marijuana for select ailments. These added regulatory expenses could cripple the industry -- or at least the smaller businesses within it. While there remains plenty to cheer about if you support the legalization effort, there still doesn't appear to be a viable pathway as of yet for investors to take part in the industry's growth.

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