Last calendar about rescheduling from 1 to 3 Timeline for Implementation
Key dates include:
- May 21, 2024: Publication of the proposed rescheduling draft ruling (PRDR) in the Federal Register and the start of a 60-day public comment period.
- June 21, 2024: Deadline for interested parties to request a hearing.
- July 20, 2024: End of the public comment period.
- August 20, 2024 (or September 20, 2024): Expected publication of the final ruling. The final ruling becomes effective 30 days after publication, potentially around September 20, 2024.
Potential Risks And Wild Cards
Zuanic identifies several wild cards that could influence the process and outcomes:
- Scope of Cole Memo II: Whether it includes SAFE banking language, provides a safe harbor for U.S. exchanges to list plant-touching stocks, and addresses FinCEN-related matters.
- Legal Challenges: Judicial challenges are expected, but legal scholar Shane Pennington considers a stay unlikely.
- Political Factors: Statements from Donald Trump and their impact on public opinion.
Sector And Stock Impacts
The rescheduling news has broader implications for the cannabis sector.
Canadian licensed producers (LPs) like Canopy Growth Corporation (NASDAQ:CGC) and SNDL (NASDAQ:SNDL) might need to form partnerships with U.S. companies to capitalize on the changing landscape.
Companies such as Tilray Brands (NASDAQ:TLRY), Aurora Cannabis (NASDAQ:ACB), and others are under scrutiny for their strategic moves in response to the evolving regulatory environment.