💸 The Tape

The STATES Act Revisited

In November 2021, Congresswoman Nancy Mace (R-SC) decided to light up the federal cannabis debate by introducing the States Reform Act—a comprehensive bill aiming to decriminalize cannabis at the federal level and hand over the reins to the states. Think of it as the federal government saying, "We're not going to harsh your mellow anymore; states, you do you."

Context and Background

As of 2023, a whopping 47 states have legalized some form of cannabis use—medical, recreational, or otherwise. Yet, like that one stubborn stock refusing to rally, cannabis remains a Schedule I substance under federal law, putting it in the same category as heroin. This legal dissonance creates a complex maze for consumers, businesses, and law enforcement, not unlike navigating tax codes without an accountant.

Key Provisions of the States Reform Act

Mace's proposal isn't just blowing smoke; it's packed with substantial reforms:

• Descheduling Cannabis: The bill seeks to remove cannabis from the Controlled Substances Act. In financial terms, that's like delisting a company from the "Do Not Touch" index.

• Regulatory Framework: It proposes a regulatory structure akin to alcohol. The Alcohol and Tobacco Tax and Trade Bureau (TTB) would oversee interstate commerce, while the FDA would handle medical use. It's as if cannabis is getting its own IPO, with the SEC and FDA playing their parts.

• Taxation: A federal excise tax starting at a modest 3%, gradually increasing to 10% over five years. The revenue would fund law enforcement, small businesses, and veterans' mental health programs.

• Expungement of Records: Non-violent federal cannabis convictions could be expunged. Consider it a debt forgiveness program for those who've been paying interest on past mistakes.

• Veterans' Access: Ensures that veterans won't lose benefits over cannabis use and allows VA doctors to recommend medical cannabis.

Bipartisan Support and Political Endorsements

In a rare display of political harmony, the States Reform Act has garnered bipartisan support:

• Rep. Tom McClintock (R-CA): Co-sponsor, advocating for states' rights and ending federal prohibition. It's like a merger between traditional conservatism and progressive policy.

• Rep. Don Young (R-AK): A long-time cannabis reform advocate, highlighting economic benefits—think of Alaska's cannabis market as an emerging market with untapped potential.

• Rep. Brian Mast (R-FL): Supports medical cannabis access for veterans, a socially responsible investment if you will.

• Rep. Peter Meijer (R-MI): Emphasizes aligning federal laws with state policies to reduce burdens on the justice system—streamlining operations for greater efficiency.

The Bottom Line

The States Reform Act could be a game-changer, not just for the cannabis industry but for federal-state relations and social justice. It's like a startup with a disruptive technology, poised to shake up a stagnant market. Investors—in this case, stakeholders across the board—should keep an eye on this one. If passed, it could signal a significant shift in U.S. drug policy, moving toward a more decentralized, state-driven approach.

📈 Dog Walkers

PA Adult Use Is Stalled…… Go Figure

With the legislative session ticking down faster than a politician's promise, Governor Josh Shapiro's grand plan to boost Pennsylvania's coffers with cannabis tax revenue is, well, not exactly lighting up the state house. House Bill 2500, aiming to legalize adult-use cannabis, seems to be going up in smoke as it languishes in committee. Despite estimates of a $250 million annual tax windfall, the bill lacks momentum, especially with its primary sponsor, Rep. Aaron Kaufer, exiting stage left at year's end. Industry experts are all fired up, seeing green in both the medicinal and recreational markets, but opposition remains, particularly from incoming Rep. Brenda Pugh, who fears the kids might get their hands in the cookie jar. So, as the session winds down, it appears Pennsylvania's cannabis ambitions might just be a pipe dream—for now.

Georiga Hits Major Milestone

Georgia's medical cannabis program is lighting up faster than a tech stock in a bull market. Over the weekend, patient enrollment hit the 25,000 mark, unlocking the state's permission to open more dispensaries—talk about a green light! Six licensed producers are now operating 13 dispensaries across Georgia, turning what was once a pipe dream into a thriving reality. Remember when the General Assembly legalized low-THC cannabis oil back in 2015 but left patients high and dry without access? Those days are going up in smoke. With each new batch of 10,000 patients, more dispensaries can sprout up. The commission's listening tour has been a hit, proving that when it comes to growth potential, Georgia's cannabis industry might just be the next big thing to watch.

👾 Number Of The Day

$44.24 Average item price in Ohio.

🗞️ The News

Bottom Line: Cannabis industry calls in Trump transition alum

DEA Judge Rejects Veterans Group’s Petition To Participate In Marijuana Rescheduling Hearing

Germany Hosts Five Other European Nations At Joint Marijuana Meeting To Discuss Legalization Experiences

Gov. Pritzker celebrates launch of new Cannabis Research Institute

New Farm Bill draft would close “loophole” of hemp-derived drugs

📺 YouTube

Gaetz's Appointment Looms: GOP Divided Over AG Role | Trade to Black

What we covered:

✅ On our latest Trade To Black Podcast, Cybin (NYSE:CYBN) CEO Doug Drysdale will join us to discuss their latest trials, where they reported a 71% remission rate in patients with major depressive disorder (MDD) for their leading compound, CYB003. We’ll ask what’s next regarding their Phase III trial and the performance of the psychedelic stock.

Plus, money is moving in the cannabis industry. Cory Azzalino, CEO of Eaze, will join us to highlight the company’s recent news about raising $10 million to acquire select assets of Eaze Technologies.

Finally, Adam Goers, SVP of Corporate Affairs at The Cannabist Company Holdings (OTC: CBSTF), will join us to share the latest he’s hearing from Washington and address any concerns about whether Matt Gaetz will still be appointed Attorney General, as announced last week by President-Elect Donald Trump.