💸 The Tape

In a move that’s sure to rile cannabis advocates while giving psychedelic researchers a glimmer of hope, a powerful GOP-led House committee has issued a report urging scrutiny of the Biden administration’s cannabis rescheduling efforts—and raising fresh alarm bells over “high-potency marijuana” and its alleged mental health risks.

Tucked into a broader fiscal year 2026 spending bill, the House Appropriations Committee’s report zeroes in on the 2023 review by the Food and Drug Administration (FDA) that led the U.S. Department of Health and Human Services (HHS) to recommend rescheduling marijuana from Schedule I to Schedule III. The committee wants the HHS Inspector General to investigate potential “deviations” from the FDA’s traditional scheduling process—including the use of a new two-factor test and cherry-picked comparators.

Translation? Some lawmakers aren’t sold on the science—or the process—that paved the way for potential cannabis reform.

The report also reignites old flames in the marijuana debate, sounding the alarm on “mental health hazards” from regular use of high-potency marijuana, especially in teens. The committee calls on the FDA to support more research into links between cannabis, schizophrenia, and addiction, echoing the talking points of prohibitionist groups like Smart Approaches to Marijuana.

And it doesn’t stop there. The committee calls out CBD products and other hemp derivatives for allegedly skirting the rules of the Federal Food, Drug, and Cosmetic Act, urging stepped-up enforcement against companies making unsubstantiated therapeutic claims. In short: If your CBD oil says it can cure cancer or COVID, expect a visit from the feds.

But amidst all the cannabis hand-wringing, there’s a silver lining—at least for psychedelics. The report encourages the FDA and Department of Defense to collaborate on clinical trials for psilocybin, MDMA, and other psychedelic therapies. It also backs public-private partnerships to explore their potential in treating PTSD and other conditions.

In classic congressional fashion, the report gives with one hand and takes with the other. While cannabis continues to be treated like the suspicious cousin at the family barbecue, psychedelics might just be getting their invitation to the main table—provided they bring data and play by the rules.

Now it’s up to the full committee to decide whether this language stays in the final bill—or goes up in smoke.

We will dive much deeper into this on the livestream at 4pm.

📈 Dog Walkers.

$FFNTF ( 0.0% ) YIKES

What’s Going On Here: 4Front Ventures Corp. (CSE: FFNT, OTC: FFNTF), a vertically integrated cannabis operator, has officially entered bankruptcy proceedings in Canada under the Bankruptcy and Insolvency Act, following its previously disclosed U.S. receivership petition.

B. Riley Farber has been appointed trustee for the Canadian Bankruptcy Proceedings. Stakeholders seeking updates or documentation can contact the trustee directly at [email protected] or visit the case page at brileyfarber.com/engagements/4frontventures.

This marks a significant development in 4Front’s restructuring efforts as it navigates dual insolvency processes on both sides of the border.

$CBSTF ( ▼ 5.46% ) The Cannabist Launches Premium Gummies

What’s Going On Here: The Cannabist Company (Cboe CA: CBST, OTCQB: CBSTF) has officially launched COAST Cannabis Co. edibles across Maryland, expanding its product lineup with a curated collection of premium, function-forward gummies. This partnership introduces COAST’s award-winning, clean-label edibles—crafted with organic ingredients and no artificial additives—to both adult-use and medical cannabis consumers.

The initial lineup features cannabinoid-specific blends, including Raspberry Lime with THCv for energy and a Sleep Suite with CBN, offered in bold flavors like Blueberry and Cranberry Pomegranate.

COAST’s woman-owned ethos and dedication to wellness align with Cannabist’s mission to diversify and elevate consumer offerings. COAST gummies are now available at gLeaf and Columbia Care locations, with artisan chocolates to follow soon.

🗞️ The News

📺 YouTube

What Happens to Cannabis Stocks When Federal Legalization Hits? | TDR Podcast

What we will cover:

✅ Host Shadd Dales and contributor Anthony Varrell break down the real implications of federal cannabis legalization — not just the headlines, but the market reaction investors should realistically expect.

While many retail investors assume legalization will cause cannabis stocks to skyrocket, the reality is more nuanced. The team explores what happens to multi-state operators (MSOs) like Green Thumb (GTII/GTBIF), Trulieve (TRUL/TCNNF), and Curaleaf (CURA/CURLF) in a post-legalization environment — from up-listing to U.S. exchanges, to increased institutional investment, and the potential for market consolidation.

But legalization also brings new competition, regulatory uncertainty, and pressure on margins as the industry scales.

This episode cuts through the noise and focuses on what investors actually need to watch for, including timing, political risk, and financial positioning.