Welcome to the second installment of our six‑part series based on learnings from 2025’s Global Cannabis Regulatory Summit.
In this collection, each article explores a key theme from the summit distilled into insights for risk experts.
In this piece, we focus on building a mature adult‑use cannabis market and outline three reform priorities that will shape policy, public health, and industry inclusion worldwide.
In this article:
- Why the STATES Act and the Cole Memo still hold relevance
- The limits of federal rescheduling
- What reform advocates are hoping for under the current administration
- Implications for insurance brokers and cannabis businesses
The United States was once a leading proponent in cannabis policy. In 1996, California became the first state to legalize medical cannabis, paving the way for other states to follow soon after, like Colorado, Nevada, Oregan and Alaska.
But the US is no longer at the forefront of progressive cannabis regulation. Countries like Canada and Germany have now implemented comprehensive frameworks, legalizing cannabis for both medical and adult use.
What are the next steps? How will the US move forward in developing regulations that reflect today’s scientific and economic realities?
These questions were at the heart of a key discussion at the Global Cannabis Regulatory Summit 2025. This article shares insights from a panel featuring Jim Cole, former Deputy Attorney General of the United States, and Cory Gardner, former Senator of Colorado.
State-by-State Regulation Remains the Most Viable Path
Gardner and Cole agreed that a decentralized approach is the most plausible way forward for US cannabis regulation. The discussion highlighted two key strategies:
- The first was the STATES Act (Strengthening the Tenth Amendment Through Entrusting States)
This proposed legislation would give full regulatory authority to individual states, with no federal oversight body implemented.
- The Cole Memo
Authored by Jim Cole in 2013 (and later rescinded), the memo recognized the limited federal resources available to prosecute state-legal cannabis conduct. It advised federal prosecutors to deprioritize enforcement and focus on high-priority concerns, such as preventing distribution to minors or cross-border trafficking.
In contrast, the Cannabis Administration and Opportunity Act proposes sweeping federal regulation. But both panelists agreed that a Tenth Amendment-based approach is more likely to succeed than any one-size-fits-all solution.
Rescheduling Won’t Override State Control
The panel also addressed the proposal to reclassify cannabis from a Schedule I to a Schedule III substance. This reclassification would:
- Acknowledge cannabis’s medical potential
- Ease restrictions on research
- Remove certain tax barriers that hinder cannabis businesses
The process, led by the Department of Health and Human Services and the DEA, is ongoing but has faced delays. The timeline remains uncertain.
Gardner and Cole emphasized that rescheduling alone wouldn’t create a unified national market. States will continue to play a central role in determining access, regulation, and enforcement within their borders.
Growing Optimism Among Reform Advocates
The panel discussed President Trump’s stance on reforms and how reform advocates are optimistic, even if changes aren’t imminent.
The President has voiced support for rescheduling cannabis and allowing states to set their own cannabis laws. He has also voiced support for:
- Ending unnecessary arrests of cannabis consumers
- Allowing cannabis businesses to access traditional banking services
Although reform may not be imminent, stakeholders remain hopeful that pragmatic and more comprehensive cannabis policies could emerge later in the current administration’s term.
Takeaways for Brokers and Insurance Professionals
For businesses operating in this fragmented regulatory environment, complexity and risk are constants. The evolving policy landscape means cannabis operators must be prepared for ongoing uncertainty and market disruption.
Relm provides specialist cannabis insurance solutions for innovators in the sector. Contact us today to learn more, and to download the full Global Cannabis Regulatory Summit White Paper from Artemis Growth Partners here.
