Is There a Place for the Cannabis Industry in Big Law?

Is There a Place for the Cannabis Industry in Big Law?

Is there a place for the cannabis industry in big law? A Harvard Law School article by attorney Eli Wald discusses how large firms face new challenges with this growing industry, blurring traditional lines in the legal profession.

Initially dominated by individual-hemisphere lawyers like criminal defense attorneys and marijuana advocates, the cannabis practice now attracts Big Law, which traditionally serves corporate-hemisphere clients. This shift blurs the line between the two hemispheres, disrupting the long-held status distinctions within the legal industry.

Wald identifies several reasons Big Law hesitates to enter cannabis law practice. Despite state-level legalization of cannabis, marijuana remains illegal at the federal level under the Controlled Substances Act (CSA), making the cannabis industry legally ambiguous. 

This raised concerns about potential criminal liability for aiding clients’ activities and professional discipline under state laws. However, as federal enforcement decreased and states adopted clearer regulations, the stigma surrounding cannabis law practice diminished, drawing more traditional business lawyers, including those in Big Law.

Despite Big Law’s increasing involvement in cannabis law, Wald argues that the industry presents unique challenges for these firms. These include smaller, less wealthy clients, conflict-of-interest risks, and the state-specific nature of cannabis regulations, which limit Big Law’s ability to leverage economies of scale. Wald concludes that while Big Law is positioning itself to capitalize on cannabis law, particularly in anticipation of federal legalization, the move reflects a potential shift in how law firms approach status, professionalism, and market-driven practices.