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Federal Appeals Court Sides with DEA in Hemp Extract Battle, Officials in Germany Take First Steps Toward Cannabis Legalization, and Congressional Research Data Shows that Legalization is Hurting Mexican Cartel Profits

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Federal Appeals Court Sides with DEA in Hemp Extract Battle

A federal appeals court ruled that hemp extracts above 0.3% THC are federally illegal and considered marijuana above that threshold. The ruling dismissed a pair of lawsuits from the Hemp Industries Association and CBD producer RE Botanicals that argued that the DEA (Drug Enforcement Administration) violated the 2018 Farm Bill’s intent with a 2020 rule regarding the 0.3% THC maximum for hemp and its derivatives. The lawsuit argued that the 2018 Farm Bill exempted hemp and its derivatives from the Controlled Substances Act. The three-judge panel supported the 2020 rule, saying that it merely clarified the Farm Bill and that any hemp products with a THC level of 0.3% are still considered controlled substances. Thus far, the DEA has not enforced this rule and has not indicated how they may go about doing so. 

Officials in Germany Take First Steps Toward Cannabis Legalization

Earlier this year, German officials announced their plans to end cannabis prohibition. They are taking the first formal steps toward enacting legalization with a series of hearings meant to provide information for the legislation. There will be five hearings with international experts on cannabis legalization to discuss different aspects of ending prohibition for the country. The first hearing will be held on Tuesday. The topics slated to be covered include experiences from those who have legalized cannabis in other countries and youth prevention, among others. Currently, marijuana possession is decriminalized in Germany and they already have a medical marijuana program. 

Congressional Research Data Shows that Legalization is Hurting Mexican Cartel Profits

Congress’s research branch, known officially as the Congressional Research Service (CRS), provided an updated report on the impact of legalization on the international drug trade. The most recent report is similar to one CRS released in 2020, but it further illuminates the decline in illegal marijuana from Mexico as the legalization movement grows. One reason for this decline is the decreased value of illegal cannabis as Canada has legalized the plant and more and more U.S. states continue to legalize marijuana for recreational and medical purposes. The report says: “Authorities are projecting a continued decline in U.S. demand for Mexican marijuana because drugs ‘other than marijuana’ will likely dominate the cross border traffic.”