I’d argue to legalize everything including the extremes and price the extremes to barely undercut and drive out any illicit market. It is always better to have control over a legitimate market than it is to have a black market. There is no way to regulate demand and creating market choke points is totally ineffective. So use state run capitalism to make the market uncompetitive and drive out any competition to gain full control. The State as the dealer makes more sense than the State playing wack-a-mole in the middle.