Trump’s Return to Office: What it Means for the Cannabis Industry

LOS ANGELES- As Donald Trump returns to the White House, the cannabis industry is assessing how his policy stance could shape the future of legal cannabis in the United States. Trump’s position on cannabis has evolved since his first term, but his approach remains largely rooted in supporting states’ rights rather than endorsing sweeping federal legalization.

States’ Rights Approach to Cannabis Policy

Trump’s focus on states’ rights means that, under his administration, the direction of cannabis legalization would largely be left to individual states. Trump has voiced support for states like Florida in pursuing recreational legalization, aligning himself with the public sentiment favoring expanded access to cannabis. This approach could enable continued state-level growth in the cannabis industry without federal interference, which might be a practical path forward for an industry navigating differing legal frameworks across the country.

In regions with strong support for cannabis reform, such as Florida, this policy could foster economic growth and further normalize cannabis use. However, without federal legalization, state-regulated cannabis markets will continue to operate in a patchwork regulatory environment that restricts certain cross-state commercial activities and raises challenges for companies aiming to expand nationally.

Banking Access and Industry Challenges

A key concern for the cannabis industry is access to banking and financial services. Cannabis remains a largely cash-based industry because federal restrictions prevent financial institutions from serving businesses involved with a Schedule I substance. During his campaign, Trump indicated an openness to expanding banking access for state-legal cannabis businesses, which could significantly reduce operational risks and increase stability for the sector. Easing these restrictions would be a major step forward, providing cannabis businesses with safer and more reliable financial resources while mitigating security concerns related to cash transactions​.

However, Trump’s prior administration left a mixed legacy on cannabis regulation. Under former Attorney General Jeff Sessions, the Department of Justice rescinded the Cole Memo, an Obama-era guidance document that had advised federal prosecutors to avoid pursuing cannabis cases in states where it was legal. While this move stirred concerns of increased federal intervention, Trump himself did not push for aggressive enforcement, and federal actions against state-legal cannabis businesses remained limited. As such, the risk of regulatory unpredictability remains, particularly given the high turnover in key federal positions during Trump’s previous term​.

Social Justice and Expungement Efforts

Unlike Democratic counterparts who have highlighted the need for social justice initiatives in cannabis policy, Trump’s approach lacks a strong emphasis on racial equity or expungement for prior cannabis-related convictions. For many advocates, addressing the disproportionate impact of cannabis-related arrests on communities of color is a priority that requires federal action, such as record expungement and reinvestment in affected communities. Without federal support, such initiatives would likely be led by states individually, as some states have already implemented equity-focused measures within their own cannabis frameworks.

Future of Federal Legalization Under a Trump Administration

Despite Trump’s support for cannabis banking access and state-led legalization, his administration is unlikely to pursue full federal legalization. Trump’s priorities align more with economic deregulation and state autonomy rather than a comprehensive overhaul of federal cannabis law. This approach may benefit well-established cannabis businesses operating in states where cannabis is legal but could limit growth opportunities for businesses looking to expand across state lines under a unified federal policy​

For the cannabis industry, Trump’s approach may provide incremental gains rather than transformative policy changes. By supporting states’ rights to establish their own cannabis laws and indicating openness to banking reforms, Trump could offer a measure of regulatory stability in a traditionally volatile industry. However, without federal legalization, the industry will continue to face challenges related to interstate commerce, financial restrictions, and inconsistent enforcement policies across states.

As cannabis policy remains an evolving issue in U.S. politics, the industry will need to closely monitor federal developments and adapt to a framework that is unlikely to see sweeping changes but may benefit from targeted reforms under a Trump administration.