💸 The Tape

Grab your popcorn, folks—another Capitol Hill showdown is on the horizon. The Senate Banking Committee is gearing up to hold a hearing on the controversial practice of “debanking,” and cannabis businesses deserve a front-row seat. Committee Chair Tim Scott (R-S.C.) wants to hear from anyone who got the proverbial pink slip from a bank—allegedly for reasons less than crystal clear.

For years, federally regulated institutions have eyed cannabis like they’re holding a hot potato. The plant might be legal in dozens of states, but in D.C., it remains a Schedule I substance. As a result, many dispensaries, cultivators, and ancillary businesses operate in a cash-laden Wild West—imagine having to buy payroll services with actual stacks of bills because no bank wants your money. If that’s not a security risk (and a logistical headache), what is?

This hearing is set for February 5 at 10:00 a.m. ET, where witnesses like Anchorage Digital CEO Nathan McCauley and Black Rifle Coffee Company founder Evan Hafer will discuss their personal forays into the financial Twilight Zone. The question that’s making waves: did regulators or political forces nudge banks into shutting certain people out? President Donald Trump recently fanned those flames by calling out Bank of America and JPMorgan Chase’s CEOs at the World Economic Forum, admonishing them to “open your banks to conservatives.”

Cannabis operators can relate. In their case, banks fear potential money-laundering accusations under federal law. Even if a business is fully legit at the state level, it can’t always secure a simple business checking account. The industry’s perpetual “wrong side of the law” posture under federal prohibition fosters an environment ripe for financial exclusion. That’s why the cannabis sector badly needs a seat at the table. It’s not about partisanship; it’s about legal businesses wanting a fair shake in the financial marketplace.

Banks, for their part, claim they’re merely adhering to regulations. They point out that any suspicion of illicit activity can lead to hefty fines, so it’s safer just to slam the vault shut. The hearing will presumably separate genuine compliance concerns from any actual strong-arming by regulators. Regardless of which side you pick, one thing is clear: cannabis companies are stuck in purgatory. If the Senate Banking Committee truly wants to probe the full scope of debanking, they’d be wise to invite the people who’ve been cash-strapped for too long—the cannabis entrepreneurs—and let them finally vent their frustrations in the national spotlight.

📈 Dog Walkers

RFK In Focus

Robert F. Kennedy Jr., poised to head HHS, is taking a noticeably cautious stance on cannabis—despite his past, vocal enthusiasm. In recent Senate questioning, he refused to endorse marijuana’s downgrade to Schedule III, stressing that final scheduling calls lie with the DEA. Previously a champion for nationwide legalization, Kennedy now seems more circumspect, declining to support comprehensive bills like the MORE Act or CAOA. This shift frustrates advocates who saw him as a surefire ally.

The HHS’s work has been done via the report and the hammer for the final ruling is being held by the DOJ. Trust the process.

🗞️ The News

Uncertainty surrounds medical marijuana's availability in Kentucky

‘Doc Ray’ spent years cultivating illicit marijuana in California. Now he’s Roanoke College’s first cannabis professor.

Colorado cannabis operator’s testing experiment yields damning pesticide, microbial and potency results

📺 YouTube

Trump Administration Eyes Job Growth to Push Cannabis Reform | Trade to Black

What we covered:

✅ On the latest Trade To Black podcast, hosts Shadd Dales and Anthony Varrell welcome in Tyler Beuerlein, Chief Strategic Business Development Officer at Safe Harbor Financial (NASDAQ: SHFS).

With extensive experience in the cannabis industry, Beuerlein has facilitated over half a billion dollars in transactions and helped open 1,000 cannabis bank accounts. He believes that the catalysts to break the cannabis industry out of legislative purgatory will likely have little to do with the industry itself. According to Beuerlein, Trump seeks "wins" in all aspects.

Beuerlein believes that Schedule 3 or decriminalization will occur purely due to perceived job growth. The labor statistics do not report cannabis jobs because it is still classified as Schedule 1. A half a million jobs hitting the labor statistics overnight would be a significant win for the Trump administration.

As well, he also believes that SAFE Banking has the best chance it has ever had to pass, not because of cannabis-related issues, but because it will include language preventing anything like Operation Chokepoint from happening again, which would be another win for the Trump administration.

Additionally Trump has been vocal about a flat corporate tax, which, although unrelated to cannabis, could benefit the industry.

Plus, the latest news from Kentucky, where Governor Andy Beshear has awarded the state’s first medical marijuana patient cards and is calling on the Commonwealth’s congressional delegation to advance legislation protecting patients' constitutional right to own firearms.