💸 The Tape

Washington has a knack for dramatic hearing titles, and Thursday’s session from the House Homeland Security Subcommittee did not disappoint. Dubbed “Invasion of the Homeland: How China is Using Illegal Marijuana to Build a Criminal Network Across America,” the hearing put Chinese-linked cannabis grows front and center, drawing law enforcement, think-tankers, and no shortage of political theatrics.

The GOP Framing: From Grow Lights to Geopolitics

Chairman Rep. Josh Brecheen (R-OK) kicked things off by portraying illicit marijuana grows as a national security crisis, claiming foreign organizations with “potential CCP links” are weaving crime, human trafficking, and drug distribution into a sophisticated web beyond the reach of state cops. Witnesses largely agreed. Donnie Anderson, Oklahoma’s top narcotics official, called the black market explosion in his state “unlike anything” he’d seen in 34 years—and fingered Chinese shell ownership schemes for exploiting residency rules. Meanwhile, Heritage Foundation’s Paul Larkin argued that legalization itself is to blame, insisting the promised elimination of the black market was always a myth.

Former DEA agent Christopher Urben piled on, saying legalization boosted demand, raised taxes, and reduced penalties—essentially giving transnational criminals a runway to invest their illicit proceeds. Add Rep. Marjorie Taylor Greene (R-GA) for good measure, who warned that while Americans tout cannabis for PTSD and stress relief, Chinese cartels are supposedly lurking behind the scenes, funneling profits into “other extremely dangerous crimes.”

The Democratic Counterpoint: Prohibition Fuels the Problem

But Rep. Troy Carter (D-LA) used his time to flip the script. Rather than doubling down on prohibition, Carter said the federal government should recognize its role in creating the illicit market in the first place. “Marijuana prohibition has failed,” he declared, pointing out that arrests have disproportionately hammered Black and brown communities. The solution, in his view? Rescheduling and expanding regulated markets to drain the oxygen from illicit networks. He even cited President Trump’s campaign-trail support for rescheduling as evidence the idea has bipartisan momentum.

Why Now?

The timing is curious. The DEA’s rescheduling process has been delayed amid procedural battles, and Trump has promised a decision “within weeks.” Meanwhile, prohibitionist groups like Smart Approaches to Marijuana (SAM) are running ads warning that rescheduling would “empower Chinese cartels.” Senators Chuck Grassley (R-IA) and Susan Collins (R-ME) have already raised alarms about Chinese-linked grows in their states. Against that backdrop, the hearing looked less like a neutral fact-finding mission and more like a pre-emptive political strike.

The Takeaway

Thursday’s testimony reflected two Americas: one convinced legalization is a Trojan horse for Chinese criminal syndicates, the other convinced prohibition is the real culprit. The truth may be somewhere in the messy middle—but for now, Capitol Hill seems happy to wage this fight under fluorescent lights rather than greenhouse LEDs.

📈 Dog Walkers

Rand Paul Is On The Record About Hemp

What’s Going On Here: This week on Trade to Black, we finally got the straight talk from Senator Rand Paul about hemp’s precarious future in the Farm Bill.

Paul made clear that the current prohibitionist push—backed by folks like Mitch McConnell and Gavin Newsom—is dangerously overbroad. Their proposed “no quantifiable THC” definition could wipe out the entire hemp industry, from farmers in Kentucky to manufacturers making wellness products. Paul argued instead for a shift from plant-level regulation to product-level regulation: test the consumables, not the crops.

He compared it to corn and alcohol: “We don’t regulate corn for ethanol. We regulate alcohol.” In his view, hemp farmers shouldn’t be punished for plants that test hot, especially since extraction can concentrate or dilute THC to any level.

Paul admitted there are bad actors—think 500mg candy-lookalike Delta-8 gummies being sold to kids—but said banning the whole industry is like torching the barn to catch one rat.

His warning was stark: if Congress rushes this Farm Bill, hemp could be outlawed within weeks. He’s lobbying conference negotiators hard, but urged the public to push their lawmakers too.

Bottom line: hemp doesn’t need prohibition. It needs sensible regulation that distinguishes between low-dose hemp products and high-potency cannabis—before “fixing” the loophole kills a $25 billion industry.

Full Video

$ACB ( ▲ 3.81% ) Ramps Up Germany

What’s Going On Here: Aurora Cannabis (NASDAQ: ACB; TSX: ACB) isn’t just keeping its foothold in Europe—it’s reinforcing it. The Canadian medical cannabis leader announced a five-year investment to upgrade its EU-GMP manufacturing facility in Leuna, Germany.

The goal? Bigger harvests, better quality, and sharper efficiency. Upgrades will include new grow rooms, advanced irrigation and lighting systems, plus a shift to hang dry and dry trim—a step designed to polish product consistency and appeal.

“This investment marks a significant milestone in our commitment to operational excellence and long-term growth in Europe,” said EVP Alex Miller, stressing that Aurora is positioning itself to meet Europe’s growing medical cannabis demand with precision.

Aurora’s Leuna facility is one of only three licensed cultivation sites in Germany, already producing cultivars under the IndiMed brand. With expansion, the site will tap Aurora’s broader genetics library to serve patients with greater variety.

The bet is simple: as Germany’s medical program expands (and whispers of broader reform continue), Aurora wants to be the go-to supplier with local, EU-GMP certified flower. In short, Aurora is aiming to turn Leuna into the crown jewel of its international supply chain.

🗞️ The News

📺 YouTube

Congress Reacts to Trump’s Cannabis Comments | TDR Cannabis in 5

What we will cover:

✅ President Donald Trump’s latest remarks on moving cannabis from Schedule I to Schedule III under the Controlled Substances Act have set off a wave of new debates and legislative activity in Washington. Lawmakers—including Rep. Ilhan Omar, co-chair of the Congressional Cannabis Caucus—are responding with renewed urgency, as proposals for rescheduling and banking reform gain traction.

This episode unpacks the timeline of Trump’s statements, the immediate reactions from Congress, and the ongoing challenges faced by entrepreneurs during state-level cannabis rollouts, especially in Minnesota. We break down how banking access, legal clarity, and policy learning from states like Colorado and California remain at the center of the conversation.

TDR Cannabis in Five presented by Dutchie brings you the latest updates on regulatory shifts, Congressional negotiations, and what these changes could mean for both cannabis businesses and investors.