💸 The Tape

President Donald Trump’s long-anticipated executive order on cannabis rescheduling finally arrived today, and while it did not “legalize weed” (despite what Twitter might suggest), it meaningfully nudged federal cannabis policy out of the 1970s and into at least the late 1990s.

The order directs federal agencies—most notably the Department of Justice and the DEA—to complete the long-stalled process of rescheduling cannabis from Schedule I to Schedule III under the Controlled Substances Act. That move formally acknowledges what patients, doctors, veterans, and dispensary accountants have known for years: cannabis has accepted medical use and does not belong in the same category as heroin.

To be clear, this is not federal legalization. States still run their own programs. Interstate commerce remains prohibited. And your local dispensary is not about to open a Nasdaq account tomorrow morning. But Schedule III matters—a lot. It eliminates the punitive 280E tax regime, unlocks expanded medical research, and lowers compliance friction across the industry. In practical terms, this is less “Reefer Madness” and more “Regulated Pharmaceutical Adjacent.”

Notably, the executive order also signals support for congressional action on cannabis banking and medical access—without doing Congress’s job for it. In Washington terms, that’s about as aggressive as a nudge gets without a filibuster catching fire.

Politically, the move is vintage Trump: disruptive, headline-grabbing, and calibrated to split the difference between reform momentum and law-and-order optics. Substantively, it’s the most consequential federal cannabis action in decades. Symbolically, it’s the federal government finally admitting that pretending cannabis has “no medical value” was never a serious position.

Markets will argue about timing. Lawyers will argue about process. Opponents will argue about kids. But the direction is now unmistakable.

Cannabis didn’t just get rescheduled today. It got reclassified as inevitable.

📈 Dog Walkers

$CBSTF ( ▼ 46.78% ) Shops VA Assets

The Cannabist Company Holdings Inc. announced that, following a formal go-shop process, it has entered into a definitive agreement to sell 100% of its Virginia cannabis operations to an entity affiliated with Millstreet Credit Fund LP for total consideration of $130 million, subject to customary adjustments.

The transaction covers Green Leaf Medical of Virginia, LLC, which includes five operating dispensaries, one additional retail location in development, and approximately 82,000 square feet of cultivation and production capacity in the Richmond, Virginia region. The purchase price consists of $117.5 million in cash at closing and $12.5 million placed into escrow, with partial release tied to post-closing adjustments and indemnification provisions.

As part of the agreement, the buyer will deposit $23.7 million into escrow shortly after signing. The transaction is expected to close in early 2026, subject to regulatory approvals, and does not require shareholder approval. Holders of the Company’s 2028 senior secured notes and convertible notes have already consented to the sale.

Proceeds from the transaction are expected to be used in part to redeem outstanding debt. The deal supersedes a previously announced agreement with Curaleaf, which was terminated after the Company determined Millstreet’s proposal was superior, triggering a $3.3 million break-up fee.

The sale represents a key outcome of the Company’s strategic review, aimed at improving liquidity, reducing leverage, and navigating ongoing industry-wide financial pressures.

Evidence Based Cannabinoids Are Here

Americans deserve access to evidence-based medical treatments and modern research infrastructure. Yet for decades, federal drug policy has failed to recognize marijuana’s accepted medical use, despite widespread state adoption and growing scientific support.

In 2023, the Food and Drug Administration (FDA) and the Department of Health and Human Services (HHS) concluded that medical marijuana demonstrates credible therapeutic value in treating chronic pain, nausea and vomiting, and anorexia related to medical conditions. Chronic pain affects nearly one in four U.S. adults, and more than 40 states and Washington, D.C. operate regulated medical marijuana programs serving over six million patients.

Despite this, marijuana remains classified as a Schedule I substance under the Controlled Substances Act (CSA)—a category reserved for drugs with no accepted medical use. HHS formally recommended in 2023 that marijuana be moved to Schedule III, a classification acknowledging medical utility and lower abuse potential. The Department of Justice issued a proposed rule in May 2024, receiving nearly 43,000 public comments, and the matter now awaits administrative resolution.

This outdated classification has stifled research, limited FDA guidance, and left patients and physicians without clear prescribing standards, increasing risks—particularly for seniors and veterans, many of whom report reduced opioid use with medical marijuana.

In parallel, hemp-derived cannabinoids such as CBD, widely used by Americans, suffer from inconsistent regulation and labeling, creating safety concerns.

It is the policy of this Administration to expand rigorous research into medical marijuana and CBD, including real-world evidence, to close knowledge gaps, improve patient safety, and inform responsible medical use—especially for vulnerable populations.

🗞️ The News

📺 YouTube

Cannabis Rescheduling: Three Things Everyone’s Waiting For | TTB Powered by Dutchie

What we will cover:

✅The TDR Trade to Black Podcast presented by Dutchie goes live today at 4 PM ET, and the team is gearing up for what was a major moment in federal cannabis policy. President Donald Trump announced earlier today that he has signed an executive order for the reclassification of cannabis to Schedule III.

Host Shadd Dales, alongside cohost Anthony Varrell, will are joined by a strong lineup of guests to help make sense of the day. Michael Bronstein, President of the American Trade Association for Cannabis & Hemp, and leading cannabis attorney Shane Pennington will walk through the key elements that were announced today. That includes how rescheduling will now open the door for expanded medical research, and how the administration might push Congress on the SAFER Banking Act, and federal agencies who will now consider Medicare pathways for CBD‑based treatments.

Later in the show, veteran investor and cannabis advocate Marc Cohodes will break down how markets might reacted to the announcement - and how even though the tape was down today, new money and investors are about to enter into the cannabis industry.