A lot is going on here in the US and internationally – and the CBD Association has got you covered! Here are some recent developments:
DEA Deschedules Epidiolex – First Cannabis Drug in 21st Century
The only FDA approved product containing CBD – Epidiolex – was in Schedule V of the Controlled Substances Act. As of April 12, 2020, Epidiolex is completely descheduled as a controlled substance by the DEA. Federally, A descheduled Epidiolex means it will be easier to get by prescription. Suppliers don’t need as much security, more insurers will be willing to pay for it, more doctors may be willing to prescribe it, and more pharmacies may stock it. States still have their own rules and regulations regarding Epidiolex – access may still be hindered in many states depending on their current regulations.
The FDA continues to place the whole cannabis plant in Schedule I. While the CBD in Epidiolex is now fully legal, a cannabis plant on your property remains a federal felony, and a state felony in many parts of the country.
CBD still illegal in Horse Racing World
A trainer in Kentucky has been suspended for 30 days after one of his horses tests positive for CBD. CBD is classified as a prohibited drug from the Association of Racing Commissioners International because if it’s “high potential to affect performance.” The CBD used was an ingredient in a supplement recommended to the trainer by the horse’s owner. The trainer and horse were disqualified from racing during the suspension and were forced to forfeit winnings from a previous race.
CBD Retail Sales Flat during COVID-19 in Comparison to Rest of Supplement Aisle
One side effect of the COVID-19 outbreak is a surge in sales for immunity supplements and natural products in general. A common side effect of any outbreak, consumers are more willing than ever to spend money on natural foods and supplements. However, CBD has not seen the same benefit as the rest of the supplement aisle. Retail sales for CBD have remained stagnant or even dropped, while online sales have boomed. “CBD [retail] sales are staying flat. This is a significant shift for an ingredient that grew at an estimated 115% in 2018, according to Nutrition Business Journal.”
Market experts don’t believe this is a problem specific to the COVID-19 pandemic for the CBD industry. Outbreak or not, the CBD industry is dealing with a new consumer. Companies with staying power will maximize their online presence and focus on the everyday benefits of CBD.
Members of Congress Seek to Include SAFE Banking Act in COVID-19 Relief Bill
Representative Ed Perlmutter (D-CO) is working to include a revised version of the SAFE Banking Act into the Coronavirus Relief Bill currently going through the Senate Banking Committee. It’s not clear what kind of revisions are being considered with respect to the SAFE Banking Act, which would shield banks from being penalized by federal regulators for servicing state-legal marijuana businesses. SBA has made clear that federal policies prohibit the agency from providing its services to businesses that market marijuana, or even those that indirectly work with the industry such as accounting or law firms. While many cannabis businesses are continuing to operate as state-approved essential services, industry stakeholders say they need the federal safeguards just like any other legitimate company. They also need states to explore loans and lending for the cannabis market. Several Senators oppose addressing the SBA issue for cannabis businesses in the Relief Bill and have asked that it be addressed in annual spending legislation.