💸 The Tape

In theory, Minnesota’s cannabis legalization law was meant to bring clarity. In practice, it’s turned into a patchwork quilt stitched together by city councils, lawyers, and more than a little creative interpretation. While the state says municipalities can regulate location, hours, and the number of retailers, some cities are pushing that boundary closer to prohibition—and finding themselves on the “naughty list.”

Local Governments Flex Their Muscles

Take Silver Bay, for instance. The North Shore city cited population-based licensing language to deny an application from entrepreneur Greg Lien, arguing the county had already “met” its cannabis quota thanks to neighboring Two Harbors. Trouble is, Two Harbors didn’t actually approve its license until months later. If Silver Bay hadn’t acted, Lien might have been the first official registrant. Now, he’s weighing whether to take his case to court—if he can afford the legal bill.

Albert Lea offers another case study. There, officials denied a retail license to applicant Jacob Schlichter, citing safety concerns and past misdemeanors. Critics argue the decision was politically charged—especially since the city simultaneously approved out-of-state applicants. The case is already before the Minnesota Court of Appeals, where judges will dissect council minutes and public statements to decide whether local leaders went rogue.

Lawyers Smell Opportunity (and Trouble)

Attorney Carol Moss, who tracks cannabis ordinances across the state, says at least 20 municipalities are skirting the law. A favorite move? Creating zoning buffers around churches, even though the statute only mentions schools, daycares, treatment facilities, and certain parks. For Moss, these ordinances aren’t just legally questionable—they’re business deterrents. “Time and money are at a premium,” she notes, and litigation isn’t cheap.

The Cost of Delay

For entrepreneurs like Lien and Schlichter, these municipal maneuvers are more than a nuisance. They can mean sunk costs, stalled projects, and in some cases, total shutdown. Even when lawsuits succeed, the lengthy process may outlast a startup’s runway. And with Minnesota’s Office of Cannabis Management limited to issuing “guidance,” the heavy lifting falls on individual litigants willing to challenge cities in court.

What’s Next?

If courts don’t settle the score, lawmakers may. Rep. Jessica Hanson (DFL-Burnsville), a co-author of the legalization bill, has already signaled that clarifications are under discussion for the next session. Until then, the cannabis map in Minnesota remains a checkerboard—where your ability to open a shop might depend less on state law and more on whether your city council sees cannabis as opportunity, nuisance, or political punching bag.

📈 Dog Walkers

FinCen Gets An Update

What’s Going On Here: For the first time in years, the Financial Crimes Enforcement Network (FinCEN) has released an update on marijuana-related banking activity—marking a return to transparency after largely halting quarterly reports in 2022.

The data comes from the “suspicious activity reports” (SARs) that banks and credit unions must file when servicing cannabis businesses, a requirement stemming from the 2014 FinCEN guidance that remains unchanged despite seismic shifts in the marijuana landscape.

Under current rules, banks must file an initial SAR within 30 days of onboarding a cannabis client and continuing SARs every 90 days. They’re also required to label filings as “marijuana limited,” “marijuana priority,” or “marijuana termination.” Compliance is expensive, and banks have long complained that law enforcement rarely acts on the data—raising questions about its utility.

The new numbers show that 80% of SARs fall under “marijuana limited” (acknowledging a cannabis transaction without red flags) while 13% are “marijuana termination” filings (ending a client relationship). SAR filings have nearly doubled since 2015, even as the number of institutions serving the sector has only grown modestly: 816 banks and 182 credit unions were active as of 2024.

The takeaway: basic banking access is expanding, but without SAFE or SAFER Banking reforms, marijuana companies and their banks remain stuck in an outdated compliance regime.

Virginia Is At A Crossroads

What’s Going On Here: Virginia’s medical cannabis system now has something it’s never had before: real-time data on every plant, product and sale. Thanks to the new seed-to-sale tracking platform powered by Metrc, regulators can finally see the full scope of the market.

In just its first two months online, the system logged 17,786 plants harvested, nearly $30 million in sales and over 256,000 transactions. Early numbers show consumer preferences clearly: flower led with nearly half of all sales, followed by concentrates (32%), edibles (15%), and shake trim (5%).

Jamie Patten, acting head of the Virginia Cannabis Control Authority (CCA), said the system “gives us a clear, real-time view” to guide oversight, protect patients, and block illegal products from entering the supply chain.

The CCA plans to launch a public dashboard, allowing patients and lawmakers to view market data directly—a move aimed at improving transparency after years of complaints about high prices, limited variety, and access barriers.

The rollout also arrives as lawmakers debate whether to finally launch a recreational cannabis market. Possession has been legal since 2021, but retail sales remain stalled. The new tracking system could provide a ready foundation if Virginia moves toward legalization in 2026.

🗞️ The News

📺 YouTube

Cannabis Industry Fights for Billions in Retroactive Tax Relief | TTB Weekly Recap

What we will cover:

✅ Major shifts are shaking up the cannabis industry, and this week’s TDR countdown presented by Dutchie covers the stories every investor, operator, and policy-watcher needs to know.

At #10, Texas finds itself in legal limbo as the Supreme Court declines to rule on local marijuana decriminalization, leaving cities like Austin and San Marcos vulnerable to sudden changes. At #9, the National Cannabis Industry Association is calling for retroactive Section 280E tax relief—a move that could return billions to struggling operators and supercharge small business growth if Congress acts.

Coming in at #8, Minnesota’s adult-use market enters a new era as non-tribal dispensaries open for the first time, signaling true market scalability and expanded product offerings.

At #7, the parent company of Edible Arrangements is now delivering hemp-derived THC products to 30 states, proving that national logistics networks are laying the groundwork for future cannabis distribution—even as federal prohibition lingers.