💸 The Tape

The next chapter of federal cannabis policy won't be written by politicians or presidents. It will be argued before an administrative law judge starting June 29 — and the organizations lining up to participate tell you everything about where this debate stands.

Both NORML and Smart Approaches to Marijuana (SAM) have filed notices of intent to participate in the DEA's hearing on comprehensive marijuana rescheduling, setting up what could be the most consequential regulatory proceeding the cannabis industry has ever seen. The hearing, ordered by Acting Attorney General Todd Blanche, will examine whether marijuana as a whole — not just state-licensed medical cannabis, which was already moved to Schedule III last month — should be reclassified under the Controlled Substances Act.

The proceeding must conclude no later than July 15, giving the administrative law judge just over two weeks to receive testimony, evaluate evidence, and build a record that could reshape federal cannabis policy for decades.

NORML: Schedule III Isn't Enough

NORML — the country's oldest and most recognized marijuana reform organization — made clear in its filing that while it doesn't oppose the move to Schedule III, it views the reclassification as inadequate. The organization's position is that cannabis should be removed from the Controlled Substances Act entirely — a process known as descheduling.

Joseph A. Bondy, chair of NORML's board and counsel to the group, framed the argument in terms of the millions of adults participating in state-regulated recreational cannabis markets who would remain in legal limbo under Schedule III.

"Adult cannabis consumers do not become patients because federal law lacks a better category for them," Bondy said. "They are not abusing medicine. They are participating in state-regulated adult-use systems enacted by voters and legislatures."

The distinction matters enormously. Under Schedule III, cannabis would remain a medicalized substance — legal for medical use with appropriate registration but still technically prohibited for recreational consumption at the federal level. That framework addresses 280E tax relief and DEA registration for medical operators but does nothing to resolve the fundamental conflict between federal law and the 24 states that have legalized adult-use cannabis.

NORML positioned itself as the voice of the consumer — distinct from industry groups focused on tax relief and distinct from medical-only advocates. "NORML is not appearing as an industry-tax-relief organization," Bondy said. "NORML is appearing because cannabis consumers are directly affected by federal scheduling, and no other likely participant represents them as consumers."

It's a strategically important framing. If the hearing record includes only medical and industry perspectives, the resulting policy could be narrowly tailored to medical operations — leaving the adult-use market in the same federal gray zone it occupies today.

SAM: Fighting to the End

On the other side, SAM filed its own notice of intent, with CEO Kevin Sabet deploying characteristically combative language.

"This fight is not over, and we will not sit on the sidelines while the federal government hands Big Marijuana its biggest political win in history," Sabet said. "Rescheduling marijuana to Schedule III has no scientific basis and would hand the industry billions of dollars in rewards for targeting children."

SAM's participation comes despite a rough stretch for the organization. A federal judge dismissed SAM's lawsuit challenging the Medicare CBD pilot program just last week, finding the group lacked standing to bring the case. SAM also filed a separate legal challenge to the medical cannabis rescheduling order itself — a case that remains pending but faces significant procedural hurdles.

Whether SAM can mount a more effective challenge within the DEA hearing process than it has in federal court remains to be seen. The hearing format — focused on factual evidence and expert testimony — could work in SAM's favor if it can present credible scientific witnesses. But the organization's credibility has been strained by a string of legal losses and increasingly hyperbolic rhetoric at a time when a Republican administration is actively driving the rescheduling it opposes.

The Hearing Mechanics

The proceeding is structured under DEA hearing procedures and the Administrative Procedure Act. Participants who filed notices of intent by the Sunday deadline had to state their specific interest, outline their objections or issues, and summarize their position. The acting attorney general will select witnesses and appoint an administrative law judge (ALJ) with broad authority — including the power to subpoena documents, examine witnesses, rule on evidence, and manage procedural matters.

This hearing is distinct from the Biden-era rescheduling process, which stalled last year amid litigation over alleged improper communications and witness selection. The Blanche-ordered proceeding is designed to move faster and with cleaner procedural footing, though legal challenges from opponents could still complicate the timeline.

What's Already Changed

While the broader hearing plays out, the medical cannabis rescheduling that took effect on April 22 is already producing tangible ripple effects across federal agencies.

The Congressional Research Service published a report explaining that certified patients who possess medical marijuana from state-licensed dispensaries now have certain protections under Schedule III, noting that the order "appears to authorize end users to possess marijuana for medical use without a CSA-compliant prescription."

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posted a draft update to its gun purchase form acknowledging the federally legal status of medical marijuana — a significant shift for the millions of medical cannabis patients who have been barred from firearm purchases under previous guidance. The revised language now states that only "use or possession of marijuana for recreational purposes" is federally prohibited.

The U.S. Treasury and IRS announced plans to issue new tax guidance for the marijuana industry, formalizing the 280E relief that Schedule III classification provides. And the DEA itself — historically the most resistant federal agency on cannabis — has launched a registration portal for state-licensed operators, with over 400 applications submitted in the first week alone.

The Department of Transportation, however, drew a clear line: medical cannabis use remains no excuse for a positive drug test among truck drivers, pilots, and other safety-sensitive workers. Schedule III doesn't mean Schedule Free-For-All.

What Comes Next

The June 29 hearing will determine whether the rescheduling that has already transformed the medical cannabis landscape extends to the entire plant — including recreational marijuana. If the ALJ recommends broader rescheduling and the acting attorney general adopts it, the 280E elimination, DEA registration framework, and normalization signals would extend across every state-legal cannabis operation in the country.

NORML wants more. SAM wants less. The industry wants certainty. And an administrative law judge will spend two weeks in late June and early July trying to build a factual record that satisfies a question fifty years in the making: does marijuana belong in the same legal category as heroin?

The answer, for medical cannabis, is already no. The hearing will decide whether that answer extends to everything else.

Source: Marijuana Moment

📈 Dog Walkers

$OPTHF ( ▼ 3.5% ) Hits Major Milestone

Optimi Health just hit a manufacturing milestone that matters in a psychedelic therapeutics space still struggling to solve the supply question.

The commercial-stage pharmaceutical manufacturer announced the completion of a production run yielding naturally derived psilocybin extract at approximately 6% psilocybin content — the highest-purity botanical extract the company has produced to date. The achievement reflects years of investment in Optimi's cultivation program, which draws on a proprietary library of more than 200 distinct mushroom genetics, and ongoing refinements to its extraction processes.

What makes this significant isn't just the number — it's that Optimi achieved it while maintaining a naturally derived profile rather than relying on synthetic production. As psychedelic therapy programs expand globally, the debate between botanical and synthetic psilocybin is intensifying, and Optimi is planting its flag firmly on the botanical side with increasingly potent results.

A portion of the extract has been earmarked for upcoming clinical research programs in Europe, where Optimi will supply GMP-grade finished material into sponsor-led studies. The remaining biomass will support ongoing formulation development and future regulated supply initiatives.

The milestone also strengthens Optimi's existing commercial supply in Australia, where its 5 mg psilocybin capsules are being prescribed for treatment-resistant depression under the Therapeutic Goods Administration's Authorised Prescriber Scheme. Optimi has been supplying finished products into that program since September 2025, with aggregated data through December 2025 showing no serious adverse events reported among treated patients.

CEO Dane Stevens called the achievement "exactly the kind of progress we strive for," noting it strengthens Australian patient supply, supports European clinical research, and expands the development potential of infrastructure Optimi owns and operates.

In a sector where most psychedelic companies are still pre-revenue, Optimi is manufacturing at scale and delivering product to patients. That distinction matters.

🗞️ The News

📺 Trade To Black

Curaleaf Thickens The Plot While SAM Keeps Losing | TTB Presented by Flowhub

• Curaleaf Uplisting Move: CEO Boris Jordan discusses the company's 1-for-3 reverse stock split and what it signals about Curaleaf's preparation for potential listing on the NASDAQ or NYSE.

• Sector-Wide Signal: The bigger story isn't one company's stock split — it's that multiple operators are beginning to position for a fundamentally different capital markets environment under Schedule III.

• SAM Lawsuit Dismissed: Michael Bronstein (ATACH) breaks down the federal judge's dismissal of SAM's challenge to the Medicare hemp CBD pilot program, finding the plaintiffs lacked standing to bring the case.

• Hemp Ban Doubts: Growing sentiment among industry insiders that Congress is unlikely to pass a sweeping federal hemp THC ban this year, despite provisions in the House Farm Bill.