U.S. House Considers Ending Federal Marijuana Prohibition in Legal States
Washington D.C., Thursday, 17 April 2025.
The STATES 2.0 Act aims to align federal and state cannabis laws, legalize interstate commerce, and adjust IRS policies, affecting marijuana industry growth.
The Details of the STATES 2.0 Act
On April 17, 2025, the STATES 2.0 Act was reintroduced in the U.S. House of Representatives by Congressmembers Dave Joyce (R-OH), Max Miller (R-OH), and Dina Titus (D-NV). The legislation aims to bring federal cannabis policies in line with state regulations by ending the federal prohibition of marijuana in states where it is legal [1]. The act’s primary objectives include protecting businesses and individuals from federal prosecution in legal states, legalizing interstate marijuana commerce, and revising IRS policies to treat marijuana businesses like other legal enterprises [2].
Implications for the Cannabis Industry
The potential passage of the STATES 2.0 Act could significantly impact the cannabis industry, which has been constrained by a lack of alignment between federal and state laws [1][2]. By permitting interstate commerce, the bill would enable marijuana businesses to expand operations across state lines, which could lead to increased market efficiency and economies of scale [1]. Additionally, by amending IRS policies, the legislation would remove financial constraints currently faced by cannabis entrepreneurs, allowing them to benefit from standard business tax deductions [2].
Political Landscape and Legislative Outlook
The bipartisan support for the STATES 2.0 Act reflects growing public approval for cannabis legalization. A national survey conducted by Fabrizio, Lee & Associates shows that 66% of voters support adult-use marijuana, and 68% support state autonomy over cannabis policies [2]. However, as the bill moves through the legislative process, its success will depend on navigating the complexities of federal politics and securing the necessary endorsements in both the House and Senate [2].
Future Prospects and Broader Implications
Aside from addressing immediate regulatory discrepancies, the STATES 2.0 Act sets the stage for future federal cannabis reforms. It requires the U.S. Attorney General to finalize a rule within 180 days that exempts state and tribal marijuana programs from federal prohibition, potentially paving the way for a federal tax-and-regulate model [1]. Additionally, Rep. Joyce and Rep. Titus are expected to refile the SAFER Banking Act, which could further bolster the industry’s growth by facilitating nationwide marijuana banking [1]. These developments suggest a transformative period on the horizon for federal cannabis policy [2].