Cannabis Musings - June 18, 2025
Cannabis policy on the wane.
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“Az men hot gelt, iz men i klug, i sheyn, i men kan gut zingen” (“With money in your pocket, you’re wise, you’re handsome, and you sing well too.”)
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I spent a lot of time last week at the International Cannabis Bar Association’s cannabis law bacchanalia in Denver talking with lawyers, regulators, and other folks about the state of the industry. Many of the attendees were coming from the Cannabis Regulators Association’s External Stakeholder Meeting in Denver, as well as Benzinga’s capital conference in Chicago (so many conferences in this industry), so the vibe was fresh. Now, long-time readers of these Cannabis Musings know that we’ve always been a bit of a skunk at the picnic, and there are examples of private companies in our industry that are surviving and, dare I say, thriving, but from policy and capital perspectives, the general mood is morose.
A lot of that is driven by the new uncertainty in the shifting grounds of cannabis policy, about which we talked a few weeks ago (cannabis capital being in the tank is certainly nothing new). It seems like the progress that the industry has made in changing the narrative is at greater risk.
Take, for example, the somewhat performative legislation reintroduced earlier this week in Congress that would increase penalties for manufacturing or selling cannabis (or other Schedule I or II controlled substances) candies or beverages, all in the name of protecting kids. I suppose the logic is that, even though all of this already breaks federal law, somehow making it even more illegal would stem the tide. Or consider how Florida’s legislature just sent a bill to Governor Ron DeSantis’ desk revoking access to medical cannabis for patients who were convicted of drug crimes, which is the exact opposite of social equity.
Even more concerning is the draft agricultural 2026 appropriations bill filed by Congress’ Committee on Appropriations (thanks to Pamela Epstein, Chief Legal & Regulatory Officer at Terpene Belt for pointing this out) basically doing a bit of an end run on the (theoretical) 2025 Farm Bill to close the hemp loophole entirely and direct the FDA to increase its (currently, basically nonexistent) enforcement of hemp-derived products under the Food, Drug, and Cosmetic Act. This, after things seemed to be trending towards some sort of middle ground on hemp (though, depending on your perspective, that might be forward progress for non-hemp cannabis.) Indeed, given that the Appropriations Committee came out and clarified its initial statement, explaining that it’s not looking to ban non-intoxicating hemp cannabinoids, suggesting that it’s somewhat serious. That same bill would also direct Health and Human Services to reconsider its prior recommendation to reschedule cannabis (a process that’s grounded to a complete halt).
Add to this the even bigger unknown of what the White House wants to do about cannabis. We’ve talked about this before, and nothing has changed from that perspective. There’s industry insiders who claim that President Trump has already shown his support for cannabis rescheduling and banking, but, as best as I can tell, the only public statement that he has personally made was in support of Florida’s (failed) adult-use ballot initiative. True, back in January, an unnamed “deputy communications director” told The Marijuana Herald that “‘President Trump continues to support marijuana banking, particularly the SAFER Banking Act, and also continues to support rescheduling marijuana,’” but that’s somewhat attenuated and vague.
One meager sign of hope is the PREPARE Act, introduced in Congress earlier this year on a bipartisan basis, which would create a Blue-Ribbon Committee to plan for post-cannabis legalization regulation. That’s a bit like the protracted negotiations over the shape of the table at which negotiations to end the Vietnam war would eventually take place, but at least the industry would get a seat (though, with so many disparate cannabis voices, and even something of a dispute over what is cannabis, we may yet see our own battle of the table).
I remain skeptical that we will see any sort of material forward progress for cannabis under the current administration. That’s not a partisan statement (here at Cannabis Musings, we’re lovers, not fighters) – that’s just my read of the room. I wouldn’t wait on federal reform. Oif nisim tor men zich nit farlozen (“Don’t depend on miracles.”)
Be seeing you.
© 2025 Marc Hauser. None of the foregoing is legal, investment, or any other sort of advice, and it may not be relied upon in any manner, shape, or form. The foregoing represents my own views and not those of Jardín or anyone else who hires me.