The cannabis legalization trend is creating jobs in states where laws have been relaxed, and big business is "looking into the industry in a big way," an expert told CNBC on Friday.



In a dramatic change in drug policy, the Justice Department said Thursday it won't sue to stop the states of Colorado and Washington from allowing recreational marijuana use.



(Read more: Justice Department won't challenge new state marijuana laws)

"It's really the first federal acknowledgement of the failed war on marijuana," said Danny Danko, High Times senior cultivation editor, told "Squawk on the Street" on Friday.



Danko also pointed out that several federal regulations will still be enforced, including interstate transportation, trafficking to minors and proceeds going to criminal organizations. "As long as these companies in Colorado and Washington stay within these parameters, they will not be attacked by the federal government," he said.



(Related: The top 16 medical marijuana strains)