💸 The Tape

Sixteen days. Eight presenting parties. Zero cameras. And one central question: does the rest of marijuana follow medicine into Schedule III?

The DEA's Administrative Law Judge hearing on broader cannabis rescheduling wraps up tomorrow in Arlington, Virginia, closing the evidentiary record on the most consequential drug policy proceeding in the history of the Controlled Substances Act. After more than two weeks of testimony, cross-examination, and procedural skirmishing, the shape of what happened is clear — and it didn't unfold the way the opponents planned.

The Highs: The Government's Case Landed

The proceeding opened June 29 with the government presenting as the proponent of the rule, bearing the burden of proof — and its two witnesses delivered moments that will echo through the post-hearing briefs.

Dominic Chiapperino, director of the FDA's controlled substance staff, did something no federal health official had ever done in an adversarial proceeding: he acknowledged under oath that cannabis has accepted medical uses in the United States, while comparing its abuse and safety profile favorably to alcohol and opioids. For an agency that spent five decades operating under the premise that marijuana has no medical value, that testimony wasn't just evidence — it was institutional history being rewritten in real time.

Dr. Corey Burchman supplied the clinical texture, testifying from direct experience that medical cannabis is "extremely helpful in chronic pain patients," that physicians "avidly" use it to limit opioid prescribing, and that some patients transitioned off painkillers entirely. His comparison of withdrawal syndromes — opioids as "a dumpster fire," cannabis as "a dying glowing ember of a campfire" — may be the most quotable line the federal record has ever produced on the subject.

And then came the concession nobody expected: under cross-examination, one of SAM's own key witnesses acknowledged that cannabis meets the statutory definition for Schedule III. When the opposition's expert validates the government's legal position, the evidentiary record doesn't just favor rescheduling — it becomes difficult to write a recommendation against it.

The Lows: An Asymmetric, Closed-Door Process

The hearing's structural flaws were real, and they cut in both directions. Every designated participant besides the government — NDASA, SAM, DUID Victim Voices, Dr. Kenneth Finn, the Tennessee Bureau of Investigation, Dr. Phillip Drum, and the states of Nebraska, Idaho, Indiana, and Louisiana — opposed the rule. Every reform organization that sought entry, including NORML and the Drug Policy Alliance, was rejected as insufficiently "aggrieved." The result was a proceeding where the opposition's claims were tested only by government attorneys, with no consumer, patient, or industry voice at the table.

Judge Derek Julius also refused to livestream the proceeding — despite the DEA having permitted livestreaming of the cancelled Biden-era hearing, and despite acknowledging the "national public interest" in transparency. Marijuana Moment's formal reconsideration request went nowhere. A hearing that will shape federal drug policy for a generation was conducted before whoever could find a seat in Arlington.

The Opponents' Record-Building Problem

Here's the strategic tension that defined the back half of the hearing: the opponents weren't really litigating the question in front of the judge. They were building a record for the D.C. Circuit.

Judge Julius set the scope with precision on day one: the hearing would consider only whether marijuana beyond the already-rescheduled medical categories should move to Schedule III. The April medical rescheduling was explicitly off the table — "no evidence or testimony will be received on that matter."

Yet much of the opposition testimony ignored that boundary in spirit if not in letter. NDASA's presentation centered on drug-testing industry economics — MRO revenue losses, employer policy costs — harms that flow from the medical rescheduling already in effect, not from the prospective question before the ALJ. SAM's case leaned heavily on procedural attacks against the Blanche order and the two-part CAMU test — the exact arguments at the heart of its D.C. Circuit lawsuit, not the scheduling criteria the judge was tasked to weigh. The state attorneys general, presenting tomorrow, are expected to emphasize federalism and enforcement disruption — sovereignty arguments aimed at Article III courts, not administrative factors under Section 812.

The pattern was unmistakable: pediatric exposure statistics, product potency variability, diversion anecdotes, and FDA data-gap critiques — much of it relevant to regulation, little of it responsive to the statutory question of whether marijuana has a lower abuse potential than Schedule I and II substances and an accepted medical use. On those actual criteria, the government's evidence went largely unrebutted, and the opposition's own witness conceded the central point.

That's not accidental lawyering. It's a hedge. If the ALJ recommends Schedule III — as the record now strongly suggests — the opponents will take their procedural and harm arguments to the D.C. Circuit, where the consolidated challenge and stay motion are already pending. The hearing, for them, was discovery and record-building for the litigation they actually believe they can win.

The DEA's Mandate Is No Longer Ambiguous

Perhaps the most significant revelation of the sixteen days wasn't any single piece of testimony — it was the government's posture. The DEA, the institution that stalled the Biden-era process for fifteen months and spent fifty years enforcing prohibition, showed up as an advocate for rescheduling. Its attorneys defended the rule vigorously, resisted SAM's attempt to call a DEA pharmacologist whose prior testimony linked cannabis to psychosis, and presented affirmative evidence of medical acceptance and comparative safety.

This is what a federal mandate looks like. The Trump executive order, the Blanche rescheduling directive, the compressed hearing timeline, the DOJ's aggressive brief against the stay motion, the on-site inspections treating dispensaries as legitimate registrants — every arm of the administration is pulling in the same direction. The agency's institutional ambivalence hasn't vanished, but it has been overridden. The government wants cannabis in Schedule III, said so under oath, and built the record to support it.

What Happens Next

Post-hearing briefs follow on a compressed schedule, and Judge Julius will then issue a recommended decision — likely within weeks given the pace Blanche has demanded. The recommendation goes to the DEA Administrator and ultimately the Acting Attorney General, who holds final authority.

The realistic outlook: a record dominated by government evidence, a scope the opponents largely declined to engage, and a concession from the opposition's own expert. If the ALJ follows the evidence, the recommendation is Schedule III for all marijuana — with a final order possible by late 2026, litigation permitting.

The opponents came to Arlington to stop rescheduling. What they mostly did was preview their appeal. The record closes tomorrow. The fight moves to the courts. And the federal government — for the first time in history — is on cannabis's side of the courtroom.

📈 Dog Walkers

$LOVFF ( ▼ 3.66% ) Inks Major EU Supply Agreement

Cannara Biotech just landed the international deal it's been building toward — and the partner is the biggest name in global cannabis.

The Québec-based producer announced a long-term international supply agreement with Curaleaf International for bulk cannabis flower destined for global medical markets, with a potential aggregate contract value of up to C$21 million over the term. The agreement commences August 1, 2026, with renewal provisions — marking Cannara's first long-term supply commitment for international markets.

The operational implications are immediate. Cannara has activated two additional cultivation zones at its Valleyfield facility, bringing production to 14 of 24 grow zones (each spanning 25,000 sq. ft.), with four more zones planned by the end of fiscal 2027. Once complete, annual production capacity reaches 75,000 kg — hitting Cannara's target roughly one year ahead of its original fiscal 2028 timeline.

The EU-GMP pathway is particularly clever. Curaleaf will support Cannara's pursuit of EU-GMP certification at Valleyfield's processing center. In the interim, all flower supplied under the agreement will be dried and processed at Curaleaf's EU-GMP certified Canadian facility before release into international markets — meaning Cannara can access European demand immediately while building its own certification.

Boris Jordan, fresh off Curaleaf's first-mover registration in Spain, praised Cannara's "impressive cultivation platform" and "clear commitment to quality." Cannara CEO Zohar Krivorot called the deal validation of everything built at Valleyfield: "This opportunistic agreement allows us to leverage our existing cultivation platform to deliver premium Québec-grown cannabis to international patients."

For Cannara — No. 1 in Québec market share, growing nationally, and leveraging the province's low energy costs — the deal converts cultivation efficiency into international revenue without distracting from its core Canadian strategy. With fiscal Q3 results dropping tomorrow, the timing of this announcement is no accident.

Québec-grown flower is going global. Curaleaf is the ride.

$MRMD ( ▼ 2.65% ) Launches Multi-Vitamin

Betty's Eddies is going after the multivitamin aisle — with a cannabinoid twist.

MariMed's flagship edibles brand announced the launch of Betty's Bite-A-Mins, a daily wellness chew combining full-spectrum cannabis, 30 mg of CBD, and the recommended daily allowance of Vitamin C, Vitamin D3, and Zinc in a tropical smoothie-flavored bite made with all-natural ingredients and organic fruits.

The product concept is smart positioning. Rather than competing solely within the crowded cannabis edibles category, Bite-A-Mins targets the intersection of two mainstream consumer behaviors: the daily multivitamin routine that millions of Americans already follow, and the growing interest in functional wellness products that stack multiple benefits into a single format. Brand Director Sara Rosenfield said the product came directly from consumer feedback: "Our consumers consistently tell us they're looking for products that fit seamlessly into their daily routines."

The 30 mg CBD dose also answers demand for higher-potency CBD options — a segment that's gaining relevance as clinical-grade cannabinoid conversations (including the CMS CBD pilot program) push consumer awareness of CBD's wellness applications beyond the low-dose products that defined the category's first wave.

Bite-A-Mins joins Betty's Eddies' effect-based lineup — Bedtime Betty's for sleep, Take It Easy Eddies for stress, Go Betty Go for energy, Ache Away Eddies for pain — a portfolio architecture built around specific consumer outcomes rather than generic THC content. That approach has made Betty's Eddies one of the top-selling edible brands in its markets and a consistent award winner.

The new SKU rolls out at MariMed's Thrive Dispensary locations and licensed retailers across Massachusetts, Maryland, Illinois, Delaware, Maine, and Rhode Island.

For MariMed — fresh off its DEA registration filings and posting 44% adjusted EBITDA growth — the launch reinforces what has always differentiated the company: brands built for actual consumer needs, not just shelf space.

📺 Trade To Black

280E Tax Fight: IRS Pushes Back on Cannabis Refunds | TDR Cannabis in 5

• The 280E Refund Battle: The IRS is pushing back against amended tax returns filed by major MSOs — including Trulieve, Verano, Curaleaf, TerrAscend, and Ascend Wellness — seeking to reclaim millions in taxes previously paid under Section 280E.

• Refunds Under Fire: Some companies already received refunds on their amended filings, and the IRS is now taking legal action to recover money it argues should never have been paid out in the first place.

• Schedule III Isn't Retroactive: The core legal issue — while rescheduling may eliminate 280E for qualifying medical operators going forward, the IRS maintains that prior tax years remain governed by the law in effect at the time, meaning Schedule I treatment applies to past returns.

• High-Stakes Uncertainty: With court cases underway and Treasury guidance still pending, hundreds of millions of dollars in potential refunds hang in the balance — making this one of the most consequential financial stories in cannabis heading into the second half of 2026.