📖 Read the full article: STATES Act 2.0 Reintroduced: What It Means for Cannabis Policy and Business
STATES Act 2.0 Reintroduced: What It Means for Cannabis Policy and Business
In a significant move for the cannabis industry, a new version of the STATES Act has been reintroduced to Congress. Known as "STATES Act 2.0," this legislation aims to protect state-legal cannabis operations from federal interference and to reform outdated policies that have long hindered the industry's growth.
What Is the STATES Act?
The original STATES Act (Strengthening the Tenth Amendment Through Entrusting States) was introduced in 2018 to exempt individuals and businesses in compliance with state cannabis laws from federal enforcement under the Controlled Substances Act. It sought to create a clear boundary between state and federal cannabis policies without fully legalizing marijuana federally.
What’s New in STATES Act 2.0?
1. Nullification of Section 280E
One of the biggest updates is the repeal of Section 280E of the Internal Revenue Code for compliant businesses. This change would allow cannabis companies to take standard business deductions, dramatically improving profitability across the legal industry.
2. Greater Protections for Financial Institutions
STATES Act 2.0 also strengthens language ensuring that banks, insurers, and other financial institutions can serve cannabis businesses without federal penalties, promoting better access to capital and banking services.
3. Reinforced State Autonomy
The updated bill further emphasizes the authority of states to regulate cannabis without federal intrusion, reinforcing the principle that cannabis legalization decisions should be made locally.
Why This Matters for the Cannabis Industry
- Tax Relief: Repealing 280E would allow dispensaries, cultivators, and manufacturers to deduct normal expenses like rent, salaries, and marketing costs, fostering more sustainable businesses.
- Banking Access: Financial security would mean fewer cash-only operations, reducing crime risks and modernizing industry standards.
- Regulatory Clarity: Businesses operating under strict state regulations would gain federal protection, allowing the industry to mature more quickly.
Impact on Consumers
For consumers, the STATES Act 2.0 could translate into:
- ✔️ Lower product prices as businesses save on taxes
- ✔️ Increased access to better-regulated, higher-quality products
- ✔️ Greater consistency in safety testing and labeling
Surgeons, LLC and the Future of Full Spectrum Wellness
At Surgeons, LLC, we welcome legislative efforts like the STATES Act 2.0 that prioritize transparency, accessibility, and consumer safety. Our commitment to producing premium full spectrum CBD products — from CBD oils to infused gummies — aligns with the higher regulatory standards this bill supports.
Conclusion: A Turning Point for Cannabis Policy
The reintroduction of STATES Act 2.0 marks a pivotal opportunity for the cannabis sector to evolve from a fragmented, high-risk market to a stable, professionalized industry. While federal legalization may still be a ways off, bills like this signal meaningful progress toward a better, safer future for cannabis businesses and consumers alike.
Outline
- Intro: Announcement of STATES Act 2.0
- Explanation of the original STATES Act
- Key updates in STATES Act 2.0 (280E, banking, autonomy)
- Why the bill matters to businesses and consumers
- How it supports brands like Surgeons
- Conclusion: Policy progress and future outlook
References
Congress.gov – Original STATES Act
