💸 The Tape

A political tug-of-war is brewing in Washington as Minnesota’s congressional delegation explores ways to blunt the impact of the newly enacted federal hemp-derived THC ban signed by President Donald Trump last week. According to Rep. Ilhan Omar (D-MN), lawmakers are now working to secure state-based exemptions that would allow Minnesota and other early-mover states to maintain their own hemp-derived cannabinoid regulatory frameworks.

Omar told Marijuana Moment that members of Minnesota’s delegation are “gauging interest” in signing a letter urging the administration to revisit the hemp language and carve out protections for states with existing hemp regulations, including Minnesota’s thriving THC beverage market.

But one of the architects of the federal ban, Rep. Andy Harris (R-MD), is brushing aside such efforts, calling industry concerns “desperate mistruths” from businesses that “stand to lose billions by selling intoxicants to children.” Harris argues that federal law supersedes state cannabis laws, and he remains committed to keeping the prohibition intact.

Meanwhile, the ban has ignited fierce debate in Minnesota. Even Attorney General Keith Ellison, who supports the state’s adult-use marijuana and THC edible laws, stunned many by signing a multistate letter backing the federal hemp restrictions—citing concerns about out-of-state non-compliant products entering Minnesota’s regulated market.

Industry backlash has been swift, with parents of cannabis patients, veterinarians, and influencers like Joe Rogan criticizing the ban’s sweeping impact—including the likely loss of non-intoxicating CBD products used for therapeutic purposes.

In response, Rep. Nancy Mace (R-SC) is circulating the American Hemp Protection Act of 2025, which would strike the ban entirely. But insiders warn her standalone bill lacks a regulatory framework, raising concerns that merely undoing the prohibition could worsen the current national patchwork of unregulated intoxicating hemp products.

Still, lawmakers such as Sen. Chris Van Hollen (D-MD) say the one-year window before implementation offers a chance to design an alternative federal regulatory system—one that balances consumer safety, state autonomy, and industry viability.

Multiple attempts to strike the hemp ban during the spending bill debate—led by Sen. Rand Paul (R-KY) and Rep. Thomas Massie (R-KY)—failed. For now, the industry faces a race against the clock to negotiate a workable solution before the prohibition fully takes effect next year.

📈 Dog Walkers

$DBCCF Decibel Slaps Q3

Decibel Cannabis Company delivered another quarter of loud, confident growth—despite some unexpected static from international regulators and a provincial labor dispute. The premium-focused producer posted Q3 net revenue of $32.9 million, up 37% year-over-year, powered largely by its AgMedica acquisition and surging global demand.

The big headline: International sales jumped to $8.4 million, a meteoric rise from just $309,000 last year. Nearly all of that came from AgMedica, whose addition continues to reshape Decibel’s revenue mix and global reach. Domestic Canadian recreational sales also edged up to $24.5 million, thanks to new marketing pushes, Qwest brand reinvestment, and a series of high-octane product launches.

Margins softened—47% vs. 53% last year—driven by pricier testing and product formats required for export markets. But profitability remains firmly intact, with Adjusted EBITDA climbing 40% to $7.3 million, underscoring the company’s ability to convert revenue growth into real operating muscle. Adjusted net income hit $3.8 million, doubling last year’s output.

Free cash flow dipped slightly to $1.5 million, which management blamed on working-capital build to support future growth—a good problem to have when your biggest issue is not having enough supply to meet international appetite.

There were bumps in the road. Germany’s sudden freeze on cannabis import approvals in October temporarily delayed product launches and slowed contract execution. Meanwhile, B.C.’s distribution-warehouse strike choked supply to retailers for more than a month. Both are “transitory,” Decibel says—but significant enough to prompt revised full-year guidance.

The company now forecasts $115 million in 2025 revenue and $24 million in Adjusted EBITDA, modestly below its prior outlook but still signaling a record year.

With premium demand climbing globally and execution improving quarter after quarter, Decibel remains one of Canada’s most compelling growth stories—just with a bit more German paperwork than planned.

San Fran Gets Real Real

San Francisco is once again postponing its long-awaited cannabis business tax—because, according to city leaders, the legal market is clinging to life like a houseplant watered exclusively with LaCroix.

Originally approved by voters in 2018 and scheduled to take effect in 2019, the tax has now been punted multiple times. This week, the Board of Supervisors’ Budget and Finance Committee recommended pushing the start date all the way to December 31, 2025, citing the now-familiar cocktail of overregulation, price compression, and an illicit market that still dominates roughly two-thirds of the city’s cannabis ecosystem.

Supervisor Rafael Mandelman put it bluntly: “We are currently facing an existential issue for the legalization project.” Translation: taxing these businesses now would be like charging entry to a sinking ship.

The Controller’s Office tested this theory with a real-world example: slap a 5% local cannabis tax on a $11 pre-roll, and the final tax burden climbs to $3.15, or 29% of the total cost. Add in state excise taxes, local fees, regulatory compliance, and the federal 280E penalty, and legal operators end up competing with illicit sellers who… well, don’t pay any of that. The result is a marketplace where the “regulated” option is often 40–60% more expensive.

Operators say the city’s continued tax deferrals are essential for survival. “The taxes are the main reason it’s hard for us… to compete,” said Ali Jamalian of Sunset Connect, who also chairs SF’s Cannabis Oversight Committee.

The move aligns with broader California efforts to rescue the legal industry, including the 2022 elimination of the state’s cultivation tax. San Francisco has also extended the lifeline for medical dispensaries and temporary operators waiting (and waiting… and waiting…) for full licensure.

For now, legal cannabis in San Francisco gets another two-year breather. The hope is that by 2026, the market won’t merely be surviving—but finally strong enough to stand on its own, tax burden included.

🗞️ The News

📺 YouTube

Cannabis Rescheduling Rumors and Hemp Panic in Washington | TTB Presented by Dutchie

What we will cover:

✅ What actually went down in Washington this week — and what does it mean for cannabis, hemp, and the push toward federal rescheduling?

Welcome to the Trade To Black Podcast presented by Dutchie, with host Shadd Dales and co-host Anthony Varrell, who just got back from D.C. after spending two full days in rooms filled with the biggest names in the industry. Today, they’re breaking down what they saw, what they heard, and why the conversations in Washington hit different this time around.

They’ll kick things off with the breaking update from Congresswoman Nancy Mace, who’s now circulating a bill to block the hemp-THC ban that President Trump signed. Then they’ll move into Joe Rogan’s comments slamming the ban and calling out alcohol-industry influence — two headlines that set the tone for the rest of the week’s conversations.