Marijuana is illegal on the federal level4
The marijuana industry is governed by a patchwork of state laws and remains illegal and classified as a Schedule I narcotic (the same category as cocaine and heroin) at the federal level. That means every producer, retailer, and consumer of marijuana is breaking federal law. Although the feds have largely taken a hands-off approach to its enforcement, until marijuana is fully legalized across the U.S., the industry exists on shaky legal ground.