The STATES 2.0 Act aims to largely exempt marijuana activities compliant with state or federally recognized Indian tribal laws from federal Controlled Substances Act prohibitions. This includes the manufacturing, production, possession, distribution, and delivery of marijuana within their respective jurisdictions. Crucially, marijuana compliant with such laws will be deemed not to meet the requirements for inclusion in any federal controlled substance schedule, with the Attorney General mandated to finalize a rule to this effect. The legislation also establishes a federal framework for interstate commerce , allowing the transportation of marijuana between states or tribal territories where it is legal, with federal law not applying to such compliant transport. However, federal prohibitions will still apply to violations involving other controlled substances, knowingly violating state or tribal law, or employing individuals under 18 years of age. The bill grants the Food and Drug Administration (FDA) authority to regulate marijuana products, treating them as drugs, foods, or cosmetics under existing laws, and establishing new regulations for other product categories focused on safety and youth prevention. Finally, the Act addresses significant financial and legal barriers for legal marijuana businesses. Conduct compliant with this Act will not be considered unlawful, will not constitute drug trafficking, and will not be a basis for asset forfeiture. Furthermore, legal marijuana businesses will no longer be subject to Internal Revenue Code Section 280E , which currently disallows tax deductions for expenses related to the illegal sale of drugs, and a Comptroller General study on traffic safety effects is mandated.