The 2024 Benzinga Capital Conference in Chicago gathered over 2,000 industry leaders, investors, and advocates, where optimism around the industry’s future was the key theme. With rescheduling and the SAFE Banking Act dominating discussions, many see 2024 as a pivotal year for businesses.
This blog explores key takeaways from the event, including the potential impact of federal reform, how businesses are navigating current challenges, and the role of technology in driving growth. Special thanks to Benzinga for shedding light on these important developments.
The Push for Federal Rescheduling
One of the conference’s biggest talking points was the potential rescheduling of from Schedule I to Schedule III. This move would reduce tax burdens and open the door for significant business growth. George Archos, CEO of Verano Holdings, and Ross Gerber of Gerber Kawasaki Wealth Management both emphasized the transformative impact this could have on the industry.
Key Benefits of Rescheduling:
- Tax Relief: Rescheduling would lift the restrictions of Section 280E, allowing businesses to deduct regular business expenses.
- Investor Interest: By removing major barriers, rescheduling could double the value of companies and attract a wave of new investors.
- Regulatory Easing: It would pave the way for further reforms, such as banking access, giving businesses more financial stability.
As Archos put it, “We’re finally on the cusp of something big,” capturing the overall mood of the event. Leaders believe rescheduling would be the first domino to fall in a series of reforms that would radically change the industry.
SAFE Banking: A Step Toward Financial Stability
Alongside rescheduling, the SAFE Banking Act was a hot topic. This legislation would allow companies access to traditional banking services, which is currently a significant obstacle for the industry. Former Senator Cory Gardner and Representative Ed Perlmutter expressed optimism about the bipartisan support the bill has gained, calling it a necessary step for the industry’s financial health.
Key Impacts of SAFE Banking:
- Access to Loans: SAFE Banking would enable businesses to secure loans and credit, fostering growth.
- Reduced Risk: Legal banking would reduce the risks of operating in cash-only environments, improving security and transparency.
- Financial Transparency: This move would allow companies to operate more like traditional businesses, increasing overall financial health.
SAFE Banking, combined with rescheduling, could be the one-two punch needed to ignite a new era of growth in the sector.
Industry Leaders Focus on Efficiency
Despite the excitement surrounding federal reform, industry leaders acknowledged the current challenges of running a business. Boris Jordan, CEO of Curaleaf, discussed the need for operational efficiency in the face of macroeconomic pressures like inflation and price compression. Curaleaf has already begun streamlining its operations to stay competitive.
Charlie Bachtell, CEO of Cresco Labs, also spoke about the unique pressures companies face, such as high taxes and limited access to capital. He stressed that businesses must adapt to today’s market while preparing for future shifts. Efficiency and adaptability are key themes in navigating the industry’s current landscape.
Industry Insights from Veteran Investor Todd Harrison
Todd Harrison, a seasoned investor, provided a candid assessment of the industry’s current challenges but remained optimistic about the future. He noted that despite the bear market, the strong turnout at the conference showed the sector’s resilience. Harrison believes that if reforms like rescheduling and SAFE Banking pass, the industry could see a major turnaround.
The Role of Technology and Personalization
Technology was another significant focus of the event, particularly its role in improving the customer experience in retail. FlowHub’s CEO, Kyle Sherman, emphasized how data-driven personalization is transforming how businesses interact with customers. This shift allows retailers to create tailored experiences that drive engagement and sales.
Additionally, X (formerly Twitter) is leading the charge in advertising. Alexa Alianiello, head of at X, discussed how the platform provides a “safe space” for conversations, allowing companies to advertise and engage more freely with consumers than on other platforms.
Jim Belushi’s Passion for
A standout moment from the conference was actor Jim Belushi sharing his personal journey from Hollywood to farming. Belushi spoke about the healing potential of , emphasizing that his work in the industry is driven by passion rather than profit. He reflected on how has helped people in his life, including veterans and those suffering from chronic pain.
Despite the financial challenges of cultivation, Belushi remains committed to the plant’s potential for healing, underscoring the therapeutic value of
Awards and Recognitions: Honoring Industry Leaders
The 2024 Benzinga Awards celebrated the accomplishments of key figures in the industry:
- Todd Harrison: Awarded the Michael Berger Capital Markets Award for his leadership in investment.
- Cory Gardner: Honored with the Friend of the Industry Award for his advocacy in advancing reform.
- Debra Borchardt: Received the Journalism Award for her contributions to reporting.
- Loriel Alegrete: Earned the Bob Fireman Award for Entrepreneurship, recognizing her work in building a socially responsible brand focused on social equity.
These awards highlight the dedication and innovation driving the industry forward.
Looking Ahead to 2025: What’s Next for ?
The message from the Benzinga Capital Conference was clear: the industry is on the cusp of significant change. With rescheduling and SAFE Banking potentially on the horizon, companies are preparing for a new wave of growth. As Ross Gerber summed it up, “When these laws change, these companies will be wildly profitable.”
The future of looks bright, with technology and personalization further enhancing the customer experience and operational efficiencies helping businesses adapt to market realities. With federal reforms possibly coming soon, 2024 could be a turning point for the industry.
See more information about Advanced Extraction Labs here. Or check out our CO2 extraction vs ethanol guide for more.
