💸 The Tape

The U.S. hemp industry caught a major break this week after Sen. Rand Paul (R-KY) successfully blocked a proposed ban on hemp-derived THC products from being included in a key Senate appropriations bill. The language—mirroring provisions in the House’s agriculture spending measure—would have prohibited any consumable hemp product containing a “quantifiable” amount of THC, a standard that would effectively wipe out most of the market.

Paul threatened to hold up the Agriculture, Rural Development, and FDA appropriations bill entirely unless the section was stripped, forcing Senate negotiators to back down. “We have hemp farmers in my state, and this language will destroy them,” Paul told Politico. “We told them we’d give consent to get on it, but we want that horrendous language out.”

The win comes despite opposition from fellow Kentuckian and hemp champion Sen. Mitch McConnell (R-KY), who pushed for the ban to move forward. Ultimately, subcommittee chair Sen. John Hoeven (R-ND) confirmed the contentious language was removed to avoid derailing the broader spending package.

Jonathan Miller, general counsel for the U.S. Hemp Roundtable, credited Paul’s hardline stance, calling it a “critical save” for the industry. “While a substantive deal wasn’t formally reached, this shows there’s a path to compromise that protects hemp farmers and small businesses,” he said.

The fight isn’t over. The House version of the bill still contains the ban, meaning it could re-emerge in conference negotiations later this year. Industry advocates fear the measure would criminalize much of the market, including products with naturally occurring trace THC levels that are standard in full-spectrum CBD.

Paul has gone on offense, introducing the HEMP Act to triple the legal THC limit for hemp and codify protections for farmers. Meanwhile, Rep. Andy Harris (R-MD), architect of the House ban, insists the goal is to target intoxicating hemp products, not “industrial or non-intoxicating” CBD.

The debate underscores a widening rift between hemp operators and state-licensed marijuana businesses who argue that intoxicating hemp cannabinoids have created a federally legal gray market that undercuts regulated cannabis programs.

For now, the Senate action gives hemp a reprieve—and sets up a high-stakes showdown when the two chambers reconcile their bills. In the words of one industry lobbyist: “Rand Paul just bought the industry time. Now we have to use it.”

📈 Dog Walkers

$CGC ( ▲ 2.42% ) Canopy Pays Down More Debt

What’s Going On Here: Canopy Growth (TSX: WEED, Nasdaq: CGC) is trimming its debt load with a new agreement to prepay US$50 million on its Senior Secured Term Loan by March 31, 2026—a move expected to shave roughly US$6.5 million off annual interest expenses.

The plan calls for three scheduled prepayments: US$25 million by July 31, 2025, US$10 million before year-end, and another US$15 million by March 2026. CEO Luc Mongeau framed the move as part of Canopy’s ongoing push to “strengthen the balance sheet and create the financial flexibility needed for sustainable growth.”

The deal also greenlights a separate US$22 million financing package for Acreage Holdings via Canopy USA, with lender consent baked into the arrangement.

With capital tight across the sector, the debt reduction not only relieves interest pressure but also signals Canopy’s intent to clean up its leverage profile while supporting its U.S. strategy through Acreage. Investors will likely view the move as incremental but meaningful progress in Canopy’s slow, deliberate march back to financial stability.

Minnesota Is Going Backwards

What’s Going On Here: Minnesota’s long-delayed legal cannabis market just hit another speed bump. The Albert Lea City Council voted to block The Smoking Tree from opening the state’s first non-tribal dispensary, despite the shop clearing state inspections and being weeks away from launch.

The move highlights a brewing tension: under Minnesota law, cities can’t outright prohibit cannabis sales, but they do control licensing and compliance. That gray area is now a potential breeding ground for lawsuits—and yet another delay in a rollout already marred by botched lotteries, lawsuits, and leadership shakeups at the Office of Cannabis Management.

For owner Jacob Schlichter, the fight is personal. “I had to bury over half a dozen of my friends due to a bad batch of heroin,” he told council members, adding that his goal was to create a safer, regulated alternative.

If this standoff drags, it could set a precedent that chills other would-be operators across Minnesota. For a market legalized in 2023 and still waiting for its first non-tribal sale in 2025, the road just got bumpier—and a lot more litigious.

🗞️ The News

📺 YouTube

What Happens 48 Hours After Cannabis Gets Rescheduled? | TDR Cannabis in 5

What we will cover:

✅ Could President Trump reschedule cannabis with the stroke of a pen?

In this episode of Cannabis in Five, Shadd Dales breaks down the scenario everyone’s talking about: what happens if the President signs an executive order to reclassify cannabis from Schedule I to Schedule III under the Controlled Substances Act.

We unpack what the first 48 hours could look like, how the DOJ and DEA could fast-track the process without public hearings, and why Section E11D of DEA regulations may give the Biden or Trump administration all the authority they need. No new science. No congressional vote. Just a move that changes the federal status of cannabis overnight.

You’ll also hear: • Why Congress isn’t needed for this to happen • How groups like SAM may try — but fail — to stop it • What Schedule III actually means for businesses, taxes, and medical access • And why this plays right into Trump’s political playbook