Curaleaf banks on Trump, GOP support for federal cannabis reform

The nation’s largest cannabis company says it is already engaging with Donald Trump’s transition team, betting the president-elect’s pro-business stance and campaign promises could revive an industry rattled by Florida’s failed legalization bid and ongoing federal prohibition.

Curaleaf Holdings’ (CURA: CA) (OTCQX: CURLF) CEO Boris Jordan revealed the early outreach during a Wednesday earnings call.

“For the first time ever, both presidential candidates publicly touted pro cannabis stances on the campaign trail,” Jordan told analysts after the company reported a $44 million quarterly loss. “With President-Elect Trump in office, we are hopeful that real federal reform, including rescheduling and SAFER Banking, can pass.”

The optimism stems from a September campaign pledge to support marijuana rescheduling and banking legislation, but Jordan also pointed out that Trump’s election night rhetoric was particularly encouraging.

“Trump closed his speech last night by saying ‘promises made, promises kept.’ We’ve already been in touch with his transition team to ensure that the new administration follows through on its commitments made to the industry,” he said.

“In our expertise, historically, President Trump has put an effort to deliver on his campaign promises, and we see no reason why this time would be different.”

The timing is crucial. A federal review of marijuana’s scheduling status will enter its final stages just as Trump prepares to retake control of the executive agencies overseeing the process.

“We have heard that the DEA has notified members of congress that they plan to move towards rescheduling,” Jordan said, calling it a “very positive development.”

While the process continues regardless of politics, Jordan drew a historical parallel to the 1980s, when a judge recommended rescheduling under Ronald Reagan but was overruled by the DEA head.

“I personally believe that this time would be different,” he said, “and I do think that the Trump administration will agree to it.”

Jordan also thinks the potential appointment of Robert F. Kennedy Jr. to lead Health and Human Services could accelerate reform efforts.

“He is incredibly positive on the rescheduling of cannabis,” Jordan said of Kennedy, though he also cautioned that meaningful changes likely won’t materialize until “at best mid next year.”

With Republicans poised to control both chambers, Jordan sees a few paths forward: action during the lame duck session via fresh engagement with GOP leadership or through the Trump Administration directly.

“I’m hopeful that he will instruct his administration to move forward with Congress on pushing that,” he said during the call. “And since it looks as though he’s going to have both houses, there’s no reason we can’t keep his feet to the fire on this issue.”

Jordan said he will go to Washington, D.C., in the next two weeks to begin talks on banking and hemp regulation under the Farm Bill.

The rapidly growing hemp sector, which reached $25 billion in just two years compared to cannabis’ decade-long climb to $30 billion, presents a particular challenge for Republican lawmakers, he noted.

“I think that it’s too early to tell,” he said. “We don’t know what the Trump administration’s position is on hemp.”

Jordan added, “We know the Farm Bill is going to come to discussion probably early next year. We do know that Republicans tend to be more conservative, but Republicans also tend to support farmers. And so, we don’t have a view yet of where they’re going to be. We intend to be very active.”

The cannabis executive suggested broader industry consolidation could follow reform, though success depends on “whether or not people are too greedy and whether or not there are egos involved.”