💸 The Tape

After years of false starts, political maneuvering, stalled proceedings, and legal challenges, the DEA Administrative Law Judge hearing on whether to reschedule all marijuana from Schedule I to Schedule III of the Controlled Substances Act officially begins today — June 29, 2026 — at a DEA facility in Arlington, Virginia.

This is the hearing the cannabis industry has been waiting for. And it's the hearing that prohibitionists have been trying to stop. What happens inside that room over the next sixteen days could determine the trajectory of federal cannabis policy for the next decade.

The Scope

The hearing's mandate is deliberately narrow. It will consider only whether marijuana beyond the categories already rescheduled — meaning recreational cannabis and any cannabis not covered by state medical licenses or FDA-approved products — should also move to Schedule III. The medical cannabis rescheduling that Acting Attorney General Todd Blanche enacted on April 22 via Section 811(d) treaty authority is off the table — the ALJ has explicitly stated that "no evidence or testimony will be received on that matter."

In practical terms, this hearing will determine whether the 280E elimination, DEA registration framework, and federal normalization that currently apply only to state-licensed medical cannabis will extend to the entire plant — including the 24 states that have legalized adult-use marijuana.

The Schedule

Chief ALJ Derek Julius issued the final day-by-day hearing schedule last week. Each designated party has been assigned a specific date to present their case:

June 29 — The Government. The DEA presents first as the proponent of the rescheduling rule, bearing the burden of proof in defending the move to Schedule III. This is the most consequential day of the proceeding — the evidentiary foundation on which the entire case rests.

July 2 — NDASA (National Drug and Alcohol Screening Association). The drug testing industry trade group will argue that rescheduling threatens its members' revenue and business models, particularly Medical Review Officer practices that derive the majority of their income from marijuana-positive test results.

July 6 — SAM (Smart Approaches to Marijuana). Kevin Sabet's organization will present its case against rescheduling, likely focused on public health arguments, youth access concerns, and the procedural challenge that forms the basis of its parallel D.C. Circuit lawsuit.

July 7 — DUID Victim Voices. An organization representing victims of drug-impaired driving incidents.

July 8 — Dr. Kenneth Finn. A physician expected to testify on the health risks associated with cannabis use.

July 10 — Tennessee Bureau of Investigation. Law enforcement testimony on the operational and enforcement implications of rescheduling.

July 13 — Dr. Phillip Drum, PharmD. A pharmacist expected to address pharmaceutical and clinical concerns.

July 14 — The States of Nebraska, Idaho, Indiana, and Louisiana. Four Republican-led states presenting their case against rescheduling, likely focusing on federalism concerns and disruption to their own regulatory frameworks.

Each designated party can present up to two witnesses with a maximum of two hours of direct examination each, followed by one hour of cross-examination per opposing party. Opening statements are capped at 15 minutes. No closing arguments will be permitted — parties will file post-hearing briefs instead.

Who's Not in the Room

Every reform supporter that filed a notice of intent to participate was denied. The Drug Policy Alliance, NORML, and all other pro-reform organizations were rejected on the grounds that they are not "adversely affected or aggrieved" by a proposed rule they support. The result is a proceeding where the government defends rescheduling against seven designated opponents — and nobody on the other side challenges the opposition's arguments, cross-examines their experts, or presents countervailing evidence.

NORML Board Chair Joseph Bondy had argued that the hearing record would be "incomplete without the perspective of adult cannabis consumers." The ALJ disagreed.

The hearing will also not be livestreamed or broadcast — despite the DEA having permitted livestreaming of the prior Biden-era hearing before it was cancelled. Marijuana Moment filed a formal request asking the ALJ to reconsider, calling the ban on remote observation "not meaningfully public" for a proceeding of this significance. As of this morning, no response has been issued.

The Government's Unusual Position

Perhaps the most fascinating dynamic of the hearing is the DEA's own internal tension. The agency is the proponent of the rescheduling rule and must defend it. But this is the same institution that opposed cannabis reform for over fifty years, was accused of stalling the Biden-era process for 15 months, and whose culture has been built around enforcing prohibition.

That tension has already surfaced. SAM attempted to call a DEA pharmacologist — who had previously submitted testimony linking cannabis to psychosis and cognitive impairment during the cancelled Biden-era hearing — as a witness. The DEA resisted the request, apparently unwilling to have its own personnel testify about marijuana's harms in a proceeding where the agency is supposed to be arguing for rescheduling.

Whether the DEA mounts a vigorous defense of rescheduling or merely goes through the motions is one of the hearing's central unknowns — and one that reform advocates are watching with justified skepticism given the agency's history.

What Happens After the Hearing

The proceeding must conclude by July 15 under Acting AG Blanche's order. After the final day of testimony, the designated parties will file post-hearing briefs — the timeline for which hasn't been publicly specified but is expected to be measured in weeks, not months, given the compressed schedule.

ALJ Julius will then issue a recommended decision based on the evidentiary record. That recommendation goes to the DEA Administrator, who can adopt, modify, or reject it. The Administrator's decision then goes to the Acting Attorney General, who holds final authority over whether to issue a rescheduling order.

If the process follows the expedited timeline that has characterized the Trump administration's approach to cannabis reform, a final decision could come as early as late 2026 or early 2027. But the parallel D.C. Circuit litigation — where SAM, NDASA, MMJ International, and four state attorneys general are challenging the existing medical rescheduling order and have filed a motion for stay — adds uncertainty. If the court issues a stay of the medical rescheduling order, it could complicate or delay the broader rescheduling process that this hearing is designed to advance.

What's at Stake

If the ALJ recommends — and the government ultimately orders — that all marijuana move to Schedule III, the implications cascade across every level of the cannabis industry.

280E tax elimination would extend to every state-licensed cannabis operation in the country, not just medical. DEA registration would be available to adult-use operators. The pathway to major exchange listings — which currently requires the kind of medical-only deconsolidation that Trulieve and Glass House have executed — would simplify dramatically. Banking access, institutional investment, and analyst coverage would all accelerate as the federal framework normalizes.

Conversely, if the ALJ recommends against rescheduling — or if the legal challenges succeed in court — the industry faces a bifurcated reality where medical cannabis operates under Schedule III while recreational remains in Schedule I, with all the tax, banking, and capital markets disadvantages that classification carries.

The Bottom Line

The hearing that was supposed to happen under Biden never did. The one ordered by the Trump administration begins today. Sixteen days. Seven opponents. One government agency defending a policy it spent decades opposing. No reform supporters in the room. No cameras. And no guarantee that the public will see what happens until the transcripts are released.

The future of federal cannabis policy is being argued in a DEA facility in Arlington, Virginia, starting this morning. By July 15, the evidentiary record will be complete. What the government does with it after that will determine whether cannabis normalization reaches its full conclusion — or stops at the medical line.

June 29, 2026. The hearing begins. Everything that happens next depends on what happens now.

📈 Dog Walkers

$TRLV Kim Rivers Cancels 10b5-1

Trulieve CEO Kim Rivers is pulling the plug on her stock sale plan — and the timing speaks volumes.

Rivers announced her intention to terminate the automatic securities disposition plan (ASDP) she adopted in March 2026, which had authorized the orderly sale of 2.5 million shares in two tranches. The first tranche — 1,699,007 subordinate voting shares — has been completed. But Rivers has notified her broker of her intention to cancel the plan on August 11 during the next open trading window, effectively blocking the second tranche that was scheduled to begin September 15.

The decision to terminate a 10b5-1 plan early is notable because these plans are specifically designed to provide executives with a predetermined, systematic approach to selling shares that avoids insider trading concerns. Voluntarily stopping one before completion signals that the CEO believes holding the remaining shares is more valuable than selling them.

Given what's happening around Trulieve right now — trading on the NYSE, the DEA ALJ hearing underway, 280E relief flowing through the medical business, potential reconsolidation of adult-use operations if broader rescheduling succeeds, and expansion catalysts in Georgia and Texas — Rivers appears to be betting that the best is still ahead.

When the CEO cancels her own sell plan, investors should pay attention.

🗞️ The News

📺 Trade To Black

ALJ Hearing Begins Tomorrow | TTB Weekly Recap

• ALJ Hearing Underway: The DEA's rescheduling hearing has begun in Arlington, Virginia, with only opponents designated to testify alongside the government through July 15 — raising questions about the evidentiary balance and what the asymmetric format means for the ultimate recommendation.

• Repeal Threats Emerge: Massachusetts will vote on an adult-use cannabis repeal initiative in November 2026, while Maine could face a similar measure in 2027 — marking the first serious attempts to reverse voter-approved legalization in any state and threatening billions in operator investment.

• Uplisting Wave Continues: Glass House Brands becomes the second U.S. plant-touching operator to list on a major exchange, following Trulieve's NYSE debut — while Curaleaf, TerrAscend, and MariMed continue positioning for Schedule III through DEA registrations, capital raises, and corporate restructuring.

• Psychedelics Hit Inflection: Definium's landmark Phase 3 data, combined with over $1 billion in recent capital raises across Definium, Compass Pathways, and Helus Pharma, signals the psychedelic therapeutics sector has crossed from speculative to institutional — with multiple Phase 3 readouts expected before year-end.