9th Circuit says Dormant Commerce Clause does not apply to cannabis, sparking circuit split
Airfind news item
By Alexander Malyshev
Published on March 12, 2026.
The 9th U.S. Circuit Court of Appeals has ruled that the Dormant Commerce Clause, a constitutional doctrine barring states from discriminating against interstate commerce, does not apply to state cannabis markets as cannabis remains federally illegal under the Controlled Substances Act (CSA). This decision has sparked a controversy within the US cannabis law, with questions about whether the Constitution protects a market that Congress claims shouldn't exist. The 1st U., S. Appeals also found that the clause applies despite federal prohibition, reasoning that exempting illegal markets would allow states to entrench advantages for their own residents. The 9th Circuit upheld this ruling, stating that the Clause does not extend to state or local laws restricting licensing in a market Congress has deemed illegal. The decision is expected to lead to the fallout of the 9th and 2nd Circuit covering Washington, California.
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