STATES Act

STATES Act

The STATES Act (Strengthening the Tenth Amendment Through Entrusting States Act) is a federal legislative proposal that would amend the Controlled Substances Act to exempt individuals and entities that comply with state cannabis laws from federal prosecution. It has been introduced in multiple Congresses but has not been enacted.

How It Works

Rather than federally legalizing cannabis outright, the STATES Act takes a federalism approach: if a state has enacted a cannabis regulatory framework, individuals and businesses complying with that framework are exempt from CSA enforcement. States that have not legalized cannabis would be unaffected.

What It Would Not Do

• Does not federally legalize cannabis
• Does not resolve Section 280E (a tax code provision, not a CSA enforcement issue)
• Does not resolve banking (financial institutions remain subject to federal money laundering statutes)
• Does not create a federal regulatory framework

Comparison to Other Legislation

The MORE Act (full federal legalization), the SAFE Banking Act (banking access), and the STATES Act represent three different legislative approaches to the same underlying problem. The STATES Act is typically viewed as the most politically moderate option.

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