Canada and the United States (U.S.) have a long history of developing cannabis legislation and regulation at various levels of government.
In 2012, two states in the U.S.—Colorado and Washington—legalized recreational cannabis. Today, 22 states have legalized adult-use cannabis, driving the market to over $33 billion USD in 2023, with expectations of exceeding $110 billion USD in 2024.
Canada followed suit and made history on October 17, 2018, by becoming the first G7 nation to legalize adult-use cannabis through the Cannabis Act, following its medical legalization in 1999. On the same date, cannabis was removed as a controlled substance from the Canadian Controlled Drugs and Substances Act. By 2025, Canada’s cannabis market is projected to reach around $5 billion CAD.
If the U.S. Drug Enforcement Administration (DEA) reschedules cannabis from Schedule I of the U.S. Controlled Substances Act (CSA) to schedule III of the CSA as was announced by the Biden Administration in 2024, the landscape of cannabis legislation is slated for a transformative change.
Cannabis regulations vary significantly across municipalities in both countries, influenced by federal and state/provincial laws. Each local government must create unique regulations, focusing on areas such as land use, business regulation, and workplace policies. While every jurisdiction is different, consistency and collaboration are vital for effective governance.
Striking the right balance between safe implementation and economic opportunity is crucial. While the European Union and its member countries continue to explore various legalization regimes, North America has an opportunity to unite to offer a set of standards that address global realities.
Diplomat Consulting (Canada) and Leaf Street Strategies (U.S.) are well-positioned to share our expertise and insights to develop adaptable regulatory frameworks that enhance production, distribution, and use of cannabis. We can guide municipal, provincial, and state governments in maximizing this burgeoning market, including.
- Optimal Tax Revenue Generation,
- Job Creation,
- Economic Diversification,
- Support for small businesses, and
- New revenue and opportunities for affiliated or ancillary businesses to enter the cannabis market.
Together, we can foster a successful cannabis industry across North America. For more information on how we can assist, visit Diplomat Consulting and Leaf Street Strategies.
