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WSJ:: Verano Bullish on US Cannabis Industry!!!!

Verano Executive Bullish on the Future of the U.S. Cannabis Industry
A potential decision to reclassify cannabis as a less restrictive drug and pending banking legislation could have a lasting impact on the sector, says company president Darren Weiss
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David Smagalla
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Dec. 26, 2023 6:00 am ET


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The past year was pivotal for the legal cannabis industry’s acceptance as a mainstream business in the U.S.

The Department of Health and Human Services in August recommended to the Drug Enforcement Administration that marijuana be reclassified to a less restrictive Schedule III substance from a Schedule I substance. The Senate Banking Committee, meanwhile, in September approved the Secure and Fair Enforcement Regulation Banking Act, which would give cannabis businesses greater access to banking services, and it now awaits a vote on the Senate floor. And in November, Ohio became the latest state to legalize adult recreational marijuana use, bringing the total number of U.S. states that permit recreational cannabis use to 24.

Risk & Compliance Journal spoke recently with Darren Weiss, president of Verano Holdings, one of the largest cannabis businesses operating in the U.S. Weiss, who previously served as the Chicago-based company’s general counsel and chief legal officer, gave his thoughts on the changing industry and the challenges it will face in 2024. The interview was edited for length and clarity.

Darren Weiss is the president of cannabis company Verano PHOTO: VERANO
WSJ: What’s your approach to the evolving landscape of cannabis laws in the U.S.?

Weiss: The approach really has to be one of agility. We’re dealing with 14 different sets of regulators, 14 sets of legislators—the 13 markets we operate in, plus the federal government—that have various different priorities and nuances.

It’s important not only that we are in the loop as to the zeitgeist in any particular market, but also that we are staying ahead of the curve as it relates to market opportunities that are presented by either changing laws or changing enforcement of those laws.

WSJ: What’s one legal development on the horizon that could most change how you do business?

Weiss: The one that comes to mind first is this rescheduling recommendation. No one really knows exactly what that’s going to mean for us as a business, whether it means that the federal government is going to treat cannabis as a Schedule III substance, whether it means that there will be a path for drug development and manufacture…what it means in terms of access to debt and equity markets, banking, credit cards, all the different things that may come with the liberalization of federal laws and federal rules. That change—and, as importantly, how that change is implemented—can have a monumental impact on the business.

In addition, there’s been discussion now for several years around a piece of banking legislation, the Safer Banking Act, that may or may not have any chance of getting anywhere—and frankly may or may not even have a tremendous impact on all businesses in the space.

One of the biggest opportunities for a company like Verano is unlocking access to the traditional debt and equity markets, both of which are available to all other federally legal businesses, which could include uplisting to a U.S.-based exchange like Nasdaq or the NYSE, which would open the door for institutional investment.

WSJ: What do you think will be the biggest compliance challenges for the coming year?

Weiss: Along with constantly navigating state-by-state regulatory and compliance nuances, politics continue to be a major factor affecting the cannabis industry at large. Cannabis enjoys growing bipartisan support and many politicians on both sides of the aisle agree on supporting cannabis reform generally. But they often hold opposing views on federal legalization that would require different compliance and regulatory models.

As an industry, we also continually encounter outdated political opposition resulting from decades of failed cannabis prohibition policy and propaganda, which contributes to the stagnation of federal reforms and excessive regulations at the state and local levels that hinder the industry and its many economic and social benefits and allow the illicit market to continue to operate in the shadows. We will prepare for all potential scenarios and continue dialogue with elected officials to ensure our experienced team is ready to pivot in any direction resulting from the changing political winds leading into an election year.

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WSJ: Do you find it easier these days to talk to banks about your business as more states allow for recreational adult marijuana usage?

Weiss: It’s gotten significantly easier, as big banks and small banks are much more open to working with us. One of the big changes that we’ve seen as well are financial institutions willing to provide real-estate debt—which at one time was completely verboten—but it’s really opened up and is a major part, frankly, of our strategy.

WSJ: How important is the passage of the Safer Banking Act to your business? And how does Verano work around the lack of such legislation at the moment?

https://www.wsj.com/articles/verano-executive-bullish-on-the-future-of-the-u-s-cannabis-industry-c20b1d0b?mod=business_lead_story