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We regulate liquor, we regulate tobacco. Regulate weed in this way: it is legal to grow, but not to sell as a plant above two inches high (or whatever). You are also allowed to give it away, but not exchange it for money or goods/services.
People have their liberty to acquire and smoke, and this eliminates a lot of the evils of massively sophisticated capitalization. Would not have to be exactly that, but maybe something like it. Government could even get their tax on by making a mandatory license to grow.