In the 21st century, more and more states have been legalizing cannabis, both for medical and recreational use, despite the fact that it's still federally restricted. This has created quite a unique and complex situation, with state laws clashing with federal laws in a way that's left a lot of businesses, consumers, and law enforcement officials feeling pretty confused and uncertain.

Let's go back in time about a decade, and give a shout out to our United States Deputy Attorney General, James M. Cole. Thanks to him, in 2013 he created the Cole Memorandum and completely changed the game for the rules, regulations, trials, and tribulations of the federal law and cannabis. 

What is the Cole Memorandum?

Basically, they're saying, "Hey, we get that some states are cool with marijuana, so we're not going to go after everyone." But, and this is a big "but," there are some lines you just can't cross. Think of it like this: you wouldn't want your teenager getting their hands on pot, right? That's why selling to minors is a big no-no.

Of course, we don't want dangerous criminals making a buck off of it either. The bottom line of the Cole Memo was that if you're keeping things legal and safe, you're probably in the clear. But if you're dealing with gangs, taking it across state lines, or putting others at risk, well, the feds will be getting involved. 

Let's be clear that the Cole Memorandum is not a law. It's more of a guidance for the law enforcement in legal states regarding growing, selling, and consuming cannabis. The memo states that consuming cannabis is fair game unless it falls under one of these eight cases:

1. Selling marijuana to minor

2. Profits from marijuana sales going to criminal organizations

3. Taking marijuana across state lines to an illegal state

4. Using marijuana to traffic other illegal drugs

5. Allowing violence and firearms in the growing of marijuana

6. Driving under the influence of marijuana

7. Growing marijuana on public lands

8. Consuming marijuana on federal property

Seems pretty legit right? It puts a tight hold on the activities we don't stand for in the cannabis industry. The outline of the memo is basically just wanting marijuana in legal states to be sold to adults that want to get high on their own time. 

History and Background

Before the Cole Memorandum came along, the federal government's approach to enforcing cannabis laws was all over the place. Some administrations took a pretty hands-off stance, while others were much more aggressive in going after cannabis-related activities, even in states where it was legal. This inconsistency made it really tough for states trying to regulate the industry and for businesses trying to operate within it.

When Colorado and Washington became the first states to legalize marijuana sales to adults in 2012, the Cole Memorandum was the response. It was an initial attempt to help make sure everyone was playing by the same rules when it came to cannabis. It set some guidelines that aimed to make things a little more straightforward for states, businesses, and cannabis consumers.  

Impact on the Cannabis Industry

The memo put businesses, investors, growers, and consumers at ease as they were less likely to face federal prosecution. It also caused the regulations to tighten up quite a bit. This was to legitimize the industry and make the standards for safety, testing, and compliance a lot better.

There was a major sense of stability and predictability with the start of the Cole Memorandum. Businesses and dispensaries could keep their doors open with confidence and not be bothered by the law. They finally had the assurance they needed to invest, innovate, and expand their operations. As a result, more dispensaries, cultivation facilities, and secondary businesses popped up, giving us  greater access to a diverse range of cannabis products.

The surge in sales also reflected the increasing acceptance and normalization of cannabis use, both for medical purposes and adult recreational enjoyment. It was like the industry was coming out of the shadows and into the mainstream.

The $4.6 billion milestone in 2014 was a true game-changer, showcasing the significant impact of the Cole Memorandum in facilitating the growth and success of the cannabis industry. It was a turning point that paved the way for even greater things to come.

Relationship with Federal Law

While the Cole Memorandum provided some level of guidance and assurance to states with legalized cannabis, it did not change the fact that cannabis remains illegal at the federal level. The Controlled Substances Act classifies cannabis as a Schedule I substance, which means it is considered to have a high potential for abuse and no accepted medical use.

This conflict between state laws allowing cannabis and federal law prohibiting it created a complex legal landscape. The Cole Memorandum attempted to navigate this conflict by providing a level of discretion to federal prosecutors in enforcing cannabis laws, but it was not a permanent solution.

The tension between state and federal laws on cannabis continued to pose challenges for businesses, consumers, and regulators. The rescission of the Cole Memorandum in 2018 by then-Attorney General Jeff Sessions further highlighted this conflict and the uncertainty surrounding federal enforcement priorities.

Attorney General Jeff Sessions and the Cole Memorandum

Attorney General Jeff Sessions took it upon himself to appeal the Cole Memorandum in 2018. Sessions stated that the memo "undermined the rule of law and the ability of our local, state, tribal, and federal law enforcement partners to carry out this mission." This meant that the Cole Memo was out and the Sessions Memo was in. 

State-Federal Conflict

Legal states have their own rules and regulations when it comes to growing, selling and consuming cannabis within the state borders. But, since these state laws are the complete opposite of the federal laws, it is very contradicting. 

This contradiction creates a range of problems and uncertainties for businesses, consumers, and the law. For example, businesses operating in the cannabis industry may struggle to access banking services due to federal regulations, and consumers may face legal risks when purchasing or possessing cannabis, even in states where it is legal.

The state-federal conflict also impacts our law enforcement, with federal prosecutors having the discretion to enforce federal cannabis laws in states where it is legalized. Any type of  inconsistency in what law enforcement can and cannot do just leads to confusion and unpredictability for everyone in the cannabis industry.

The Role of Federal Prosecutors

The guidelines that the memo provided to federal prosecutors were very understanding priorities that are needed to make the cannabis industry safe. Federal prosecutors have the discretion to decide how to allocate resources and enforce federal cannabis laws in states where it is legalized.

After the Cole Memorandum was taken away in 2018, federal prosecutors got more freedom to decide how strictly they wanted to enforce cannabis laws. This means they can choose how much attention they want to give to enforcing federal cannabis laws in states where it's legalized. It gives them the flexibility to adapt to different situations and decide where to focus their efforts based on what they see as the most important issues related to cannabis.

Future of Cannabis Regulation

As the public's attitudes continue to shift and more people recognize the potential benefits of cannabis, policymakers are really feeling the pressure to reform existing laws. And the ongoing medical research is just revealing more and more about the incredible healing powers of cannabis - it's hard to ignore that kind of scientific evidence.

Of course, the economic impact is a huge driver too. States and countries see the potential tax revenue, job creation, and business opportunities that come with a regulated cannabis industry. 

And the push for social equity is a never-ending battle. Just within the past couple of years, a massive amount of those imprisoned for low-level marijuana possession were set free, and pardoned of all convictions.

Conclusion

Without a doubt, the Cole Memorandum impacted the cannabis industry in multiple positive ways. From regulating the growing and selling of the 'drug', to placing rules on whoever consumes it. No longer is consuming cannabis a major taboo topic and is being seen as a benefit to medical patients, law enforcement, the state's economy and lowering crimes.