💸 High Impact

Let’s Talk About The Chevron Doctrine

Ah, cannabis—a booming industry caught in the crosshairs of federal oversight, state experimentation, and a legal framework that can only be described as a Rubik’s Cube of contradictions. Here we have a product that’s both a Schedule I controlled substance under the federal Controlled Substances Act (CSA) (translation: a big no-no), but also something you can legally buy pretty much nationawide. Confused yet? Welcome to the cannabis industry in the United States.

But wait, there's more! In 2018, Congress decided to make things even more interesting by passing the Farm Bill, which legalized hemp and its derivatives—like CBD—so long as they contain less than 0.3% of the psychoactive compound Delta-9 THC. So, as long as you're extracting from hemp and not rolling joints of federally illegal marijuana, you can bask in legal sunshine. Or can you?

This brings us to the Chevron Doctrine, the 1984 legal rule that lets federal agencies like the DEA and FDA play fast and loose with interpreting laws. But now, thanks to a potential Supreme Court reversal, the once all-powerful Chevron might be on its way out. And with it, the cannabis industry could be heading into uncharted waters. Let’s break it down.

Right now, federal agencies like the DEA and FDA are the final arbiters when it comes to making sense of cannabis laws. These laws, as we’ve established, are often about as clear as mud. Under the Chevron Doctrine, the DEA has been interpreting these ambiguous rules however it pleases, often in ways that make life harder for cannabis businesses. But if Chevron is overturned? Well, the courts might step in to clip these agencies' wings.

This could be a game-changer for the industry. Without Chevron, the DEA might lose its superpower of creating its own definitions for ambiguous laws. Fewer arbitrary decisions could mean more room for cannabis businesses to flourish. No more DEA playing hall monitor over hemp-derived cannabinoids, at least in theory.

Here's the thing: The cannabis industry is already swimming in murky legal waters. Products like Delta-8 THC, THC-O, and other hemp-derived cannabinoids live in a legal gray zone. One minute they're legal, the next they're not, depending on how the DEA feels about its morning coffee. But without Chevron deference, courts might start playing a much larger role in deciding what’s legal and what’s not.

This could be good news if you like predictability. More judicial oversight might lead to clearer, more consistent rulings that businesses can plan around. But it’s not all sunshine and gummies. Courts—particularly conservative ones—could also slam the door on more lenient interpretations that the cannabis industry currently benefits from. We could be looking at a legal tug-of-war where cannabis businesses are stuck in the middle.

Now let’s pivot to one of the most juicy regulatory developments in recent cannabis history: Delta-8 THC. If you haven’t heard of it, Delta-8 is like Delta-9 THC’s cool cousin. It’s derived from hemp, so as long as you stick to that magical 0.3% Delta-9 limit, Delta-8 is technically legal under the Farm Bill. But of course, that didn’t stop the DEA from initially saying, “Hold on, not so fast!”

The DEA’s first take was that Delta-8 is synthetic—and therefore illegal—because it’s chemically altered from the plant. Industry advocates weren’t having it and fired back with legal challenges, arguing that Delta-8, derived from legal hemp, should be kosher. And surprise, surprise—the DEA recently backed down, ruling that cannabinoids derived from hemp, including Delta-8, are A-OK under the 2018 Farm Bill as long as they meet that THC threshold.

Talk about a victory for the hemp industry. This decision opened the floodgates for hemp-derived cannabinoids like Delta-8 to proliferate across the country, creating a green rush for producers, retailers, and—let’s be honest—consumers looking for a legal high.

The overturning of the Chevron Doctrine could be the beginning of a regulatory revolution for the cannabis industry. Whether that revolution leads to greener pastures or a legal minefield remains to be seen. But one thing’s for sure: this high-stakes legal drama is far from over. So buckle up, cannabis entrepreneurs and investors—you’re in for one wild ride.

📈 Dog Walkers

Bright Green Has Hit Some Turbulent Waters

Well, it looks like Bright Green Corporation (Nasdaq: BGXX) just hit a bit of turbulence. After Nasdaq unceremoniously canceled the company's delist appeal hearing, trading of Bright Green shares has been suspended, which is the kind of news that makes shareholders spill their morning coffee. Bright Green also remains committed to its ambitious EB-5 capital raise, though that’s been tied up in U.S. government delays. Shareholders, grab your popcorn for the November 15 annual meeting, where the company will pitch its latest plans, including possible partnerships and acquisitions. In the meantime, we’ll see if this pot stock can still light up investors, or if it’s headed for a permanent fade out.

Some Florida Lawmakers Are Still On The Fence Regarding Amendment 3

Despite former President Trump’s support for marijuana legalization, Florida GOP lawmakers are staying on the sidelines, declining to endorse the state’s marijuana legalization initiative. Their reluctance highlights a disconnect between the national momentum for cannabis reform and the conservative leadership’s hesitance to embrace it. This ambivalence could pose challenges for the initiative, which seeks to bring legal adult-use cannabis to the state. As the political landscape shifts, it remains to be seen whether the GOP will change its stance on the issue.

Original Story - MM

👾 Number Of The Day

$28.53 The average cannabis item price in California over the last 90 days.

🗞️ The News

Shifting Stances? Senator Booker’s Rumored Call For SAFE

Fourth California marijuana testing lab loses license as crackdown continues

Bright Green Corporation Provides an Update, Reinforces Commitment to Shareholders, and Focuses on Growth and Strategic Partnerships

Cannabis industry report advocates for ‘level playing field’ between hemp and marijuana

Marijuana Use Does Not Impact Working Memory And Other Brain Processes, American Medical Association Study Finds

📺 YouTube

Which of These Five Small Cap Stocks Would We Buy? | TDR Small Cap Sunday

What we covered:

✅ In our latest Trade to Black Small Cap Sunday Podcast, we provide research on five small-cap stocks that include three that have doubled in value in the last year - do we like them at these levels?

Also, one of these stocks is producing a dividend of over 20% a year - who is it?

As usual, the show will review each companies gross profit margin, levered free cash flow, revenue, credit rating, and dividends. We also analyze growth catalysts for each company, the industry, and overall market trends.