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Entrepreneurial Regulatory Legal Strategy: The Case of Cannabis
Author(s) -
Baker Colleen M.
Publication year - 2020
Publication title -
american business law journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.248
H-Index - 23
eISSN - 1744-1714
pISSN - 0002-7766
DOI - 10.1111/ablj.12172
Subject(s) - constraint (computer aided design) , business , government (linguistics) , cannabis , face (sociological concept) , government regulation , entrepreneurship , regulatory authority , federalism , resource (disambiguation) , law and economics , economics , industrial organization , law , public administration , finance , political science , politics , sociology , mechanical engineering , psychology , computer network , social science , philosophy , linguistics , china , psychiatry , computer science , engineering
This article develops the concepts of regulatory legal strategy, a resource‐based view of government agencies, and regulatory entrepreneurship. These ideas are explored through a case study of the limited (if any) access that legal cannabis‐related businesses have to the banking system due to the clash between federal law and laws in those states that have legalized some uses of cannabis. This article argues that regulators’ entrepreneurial regulatory legal strategies can have a material impact on regulated entities and give them a competitive advantage. To demonstrate, this article claims that regulators’ adoption of permissive regulatory legal strategies has facilitated access of some cannabis‐related businesses to the banking system. Conversely, if regulators adopted obstructive regulatory strategies, this would act as a constraint on such access in the future, even if Congress resolves the federalism issue largely responsible for the current limitations these businesses face.