💸 The Tape

Regulatory freezes can feel like hitting the “pause” button on your favorite streaming show right in the middle of a cliffhanger—annoying, but often part of the process. In a move reminiscent of past administrations, this new memorandum puts the brakes on rulemaking across federal agencies until department heads appointed by the President after January 20, 2025, have had their say. Translation? If you’re waiting on that big reveal—like the potential rescheduling of cannabis from Schedule I to Schedule III—be prepared to wait a little longer.

Under this directive, no rule can be proposed, issued, or even shipped off to the Office of the Federal Register until a properly anointed department head reviews and approves it. Sure, there’s an “emergency exception,” but cannabis likely doesn’t fit the same category as, say, a virus outbreak or a natural disaster. Meanwhile, any rules already en route to the Federal Register before publication get an express ticket back to the agency for review, presumably to ensure they aren’t stepping on the policy toes of the new administration.

But it doesn’t stop there. Even rules that are already published—though not yet in effect—face a potential 60-day postponement. Think of it like a mandatory waiting period before the big regulatory wedding can take place. During this time, agencies can open comment periods or otherwise tinker with the details. If cannabis rescheduling is indeed caught in this review net, agencies like the DEA and the Department of Health and Human Services may need to spend those extra two months reevaluating public feedback, legal complexities, and new data that could emerge.

On one hand, the administrative slowdown could cool short-term enthusiasm but hey this is the cannabis industry and we hit a 90 snag last week so we are paused anyway. On the other, the final result may come with fresh policy insights, which could smooth the path to a more stable regulatory framework. A slight delay, after all, isn’t the end of the world—just a cue to check your watch and keep calm.

If, after the review, officials see no major “substantial questions,” the rules glide ahead unscathed. But if red flags pop up, expect further wrangling, potentially involving the Office of Management and Budget. So while the cannabis sector twiddles its thumbs, the new memo ensures that every agency is singing from the same policy hymn sheet. It’s bureaucracy at its finest—or its slowest—depending on your perspective. In the meantime, patience may be the smartest investment strategy.

📈 Dog Walkers

Virginia Wants To “Do The Right Thing”

Virginia is on track to seal past marijuana offenses like a secret sauce recipe—no court order required. The State Crime Commission wants all simple possession records cleaned up, although the legislature still has to rubber-stamp the plan. Meanwhile, Gov. Youngkin previously nixed resentencing relief, citing public safety concerns. Despite that, adult use remains legal, though you won’t find any official dispensaries yet thanks to Republican roadblocks. Bills to open licensed cannabis shops have advanced in committees, and supporters hope to outmaneuver the governor’s veto. If lawmakers succeed, Virginia could soon be rolling out a regulated cannabis market with legal clarity.

🗞️ The News

There’s room for new cannabis brands, even in mature markets, executives say

Former DEA Official Who Says Marijuana Is A ‘Gateway Drug’ And Confused Agency’s Scheduling Role Claims Trump Allies Want Him As Administrator

📺 YouTube

Will Trump Sign Executive Order for Cannabis Industry? | Trade to Black

What we covered:

✅ On our latest Trade of Black podcast at 4 PM Eastern Time today, hosts Shadd Dales and Anthony Varrell will discuss the latest developments in Washington. Donald Trump will be sworn in today as the 47th President of the United States of America.

There is much speculation in the cannabis industry about whether President Trump will sign an executive order to advance the overall cannabis industry. We will discuss whether this is true or just rumors, giving hope to cannabis supporters.

We will also touch on how the advancement of crypto will help influence the cannabis space, particularly in banking.

Plus, we will take a look at Kentucky's medical marijuana market, which is reloading its legislative crosshairs on federal gun restrictions. The bipartisan resolution aims to clarify that cannabis patients aren’t barred from bearing arms, challenging the Gun Control Act of 1968 in recent news.