On Monday’s Trade To Black Podcast, we’re thrilled to host Josh Schiller, an experienced trial lawyer from Boies Schiller Flexner LLP. Josh Schiller provides updates from last week’s oral argument in the David Boies lawsuit, which challenges the federal government’s outdated marijuana regulations. Together, Josh and Shadd examine the legal complexities surrounding federal cannabis regulations and their impact on intrastate businesses.
The lawsuit, spearheaded by plaintiffs including Verano and other major cannabis operators, challenges the application of the 2005 Gonzales v. Raich Supreme Court decision. According to the Gonzales v. Raich ruling, congress may criminalize the production and use of homegrown cannabis even if state law allows its use for medicinal purposes.
During the oral arguments at the U.S. Court of Appeals for the First Circuit, the plaintiffs argued that the 2005 Gonzales v. Raich decision does not account for modern state laws and the widespread legalization of medical and recreational cannabis in over 39 states. The suit emphasizes the financial and regulatory burdens imposed by federal prohibition, including restricted access to banking, taxation issues, and the inability to list on US stock exchanges.
The Department of Justice (DOJ) defended its stance, citing the need for consistent federal oversight of interstate commerce. However, Schiller countered that this approach undermines legitimate intrastate businesses and contradicts the DOJ’s own policies of non-enforcement in many cases.
Josh Schiller notes that the David Boies lawsuit could move to the Supreme Court if the First Circuit affirms the district court’s decision, which recognized the plaintiffs’ standing but deferred to the 2005 precedent. A Supreme Court ruling in favor of the plaintiffs could dismantle federal barriers, allowing cannabis businesses to access loans, insurance, and traditional banking, transforming the industry overnight.
This case represents a significant step toward aligning federal law with state policies and public opinion, which overwhelmingly supports legalization. Hear the answers to key questions when you tune in for the full episode.
