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Regulations in flux Because a large number of states have legalized medical marijuana, many patients and even some physicians might think that certain safety standards are in place. That's not the case, at least not on a federal level. Federal laws still prohibit the sale of marijuana, so there aren't any federal safety regulations in place, according to the research team. However, that doesn't mean that states can't have their own safety regulations for medical marijuana. In fact, California's Medical Cannabis Regulation and Safety Act does have components that require several state agencies to establish regulations and standards for medical marijuana. A major problem, though, is that these agencies are still in the process of developing regulations. The California Department of Food and Agriculture, for example, won't even begin to issue licenses for medical marijuana growers until 2018. It also seems likely that the federal government will become more involved. This doesn't mean that the Justice Department will crack down on the sale of medical marijuana. We could instead see movement by theU.S. Food and Drug Administration (FDA) to establish federal safety standards, especially if current congressional efforts to pass legislation prioritizing state marijuana laws above federal laws are successful. Potential impact of tighter regulations Companies such as GW Pharmaceuticals (NASDAQ: GWPH)that develop cannabis-based drugs shouldn't be impacted by any increased regulations for medical marijuana.

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