Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Sunday, March 4, 2018

Some perspectives on the rescission of the Cole Memo two months later

It has now been a full two months since Attorney General Sessions decided to rescind the Cole Memo which expressly stated that federal prosecutors would not prioritize criminal enforcement against state-compliant marijuana businesses.  A lot could have happened in those two months, but for now it still seems, as I suggested in this prior post, that in the short term the Justice Department may have been impacted more by rescission of Cole Memo than marijuana industry.  But this new Forbes article, headlined "How Cannabis Entrepreneurs Feel About Sessions' Reversal Of The Cole Memo," provides some industry-player perspectives on this front. I recommend the piece in full, as it provides "opinions from a collection of industry experts discussing Sessions’ reversal of Cole’s memorandum [which} cover investment strategies, regulatory compliance, disintermediation and yes blockchain." Here are a few of the quotes I found interesting:

Wil Ralston, President of SinglePoint (OTCMKTS: SING), a publicly-traded cannabis and technology holding company specializing in acquisitions of small to mid-sized companies with an emphasis on mobile technologies and emerging markets:

"Entrepreneurs seeking opportunities in the cannabis industry are still pushing full speed ahead. As an entrepreneur, you're always analyzing the risk:reward of your decision-making; as of right now, the potential success that can be realized in the cannabis industry is such that entrepreneurs will likely continue to find their way, even through the reversal of the Cole Memo. We've already seen quite a bit of pushback to Sessions' reversal of the memo, from the general public to government officials, and in the absence of a seriously damaging development, entrepreneurs will keep running towards the cannabis industry, not away from it."...

Leslie Bocskor, President of Electrum Partners, an advisory services firm specializing in medical and recreational cannabis and ancillary businesses:

“My take is that the sleeper technology for the cannabis industry will be blockchain and cryptocurrency. Whereas many think crypto is a solution for transactions, and it may be, my take is a little different.  Since cannabis is the red-headed step child of the venture and early stage finance world, due to the federal illegality, we will see cryptocurrency ‘tokenomics’ (not my word, Thomas Carter of Dealbox; www.dlbx.io) be used to disintermediate the venture capital world, first in cannabis companies and then beyond.  Using cryptocurrencies with registered compliant offerings to speed up and simplify the capital formation process will be the news we read about one year from now, having been done successfully for cannabis companies first.”

http://lawprofessors.typepad.com/marijuana_law/2018/03/some-perspectives-on-the-rescission-of-the-cole-memo-two-months-later.html

Business laws and regulatory issues, Federal Marijuana Laws, Policies and Practices | Permalink

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