Controversy continues surrounding the legalization of marijuana in certain states as the Justice Department issued a statement signed by Deputy Attorney General James Cole, asserting that the federal government is “deferring its rights to challenge” the states' legalization laws.

The Senate Judiciary Committee continues to debate the recent decision to allow Washington and Colorado to determine their own marijuana regulations, despite the federal government's prohibition of the drug.

The Justice Department's latest move has been criticized as a “wait and see” technique, but Cole stands by the decision, albeit unenthusiastically, stating that “there are no perfect solutions.”

Cole also testified that the Dept. of Justice will continue to observe measures taken by law enforcement officers in Washington and Colorado, and if any red flags should rise, the federal government will intervene.

The government's conservative decision on the issue has been under fire by some representatives. Senator Chuck Grassley (R-Iowa) questioned the states' ability to contain the drug.

“It seems unlikely that we can confine the industry's use of marijuana for adults within the states of Washington and Colorado,” Grassley said.

Industry regulation and taxation has also been under debate by the Judiciary committee, with restrictions stemming from the Internal Revenue code and the Controlled Substance Act making businesses ineligible for bank loans and credit cards. Because these businesses are forced to operate as cash-only, it is difficult to track revenues and audit for tax purposes.

Although several pieces of legislation to address the issue have been proposed by Congress, none have been enacted, which means the Dept. of Justice will continue to monitor conflicts on a case-by-case basis.

Special Reports /

IQ: Controversial Pot Loophole: Senate Debate Continues

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