💸 The Tape

After years of playing regulatory ping-pong, the Drug Enforcement Administration (DEA) has finally tossed the ball across the table: it has formally asked federal health officials to conduct a scientific review of psilocybin, the psychedelic compound in “magic mushrooms.”

The move follows a long and winding legal saga led by Dr. Sunil Aggarwal, a Washington State physician who’s been trying since 2020 to win permission to use psilocybin in palliative care. His efforts were met with years of denials, lawsuits, and appeals—all while patients in need kept waiting.

Now, after some prodding by the courts, DEA has handed the matter to the Department of Health and Human Services (HHS) for review. That’s a meaningful step because rescheduling requests can’t move forward without a scientific and medical assessment from HHS, which relies on the Food and Drug Administration (FDA) for its analysis.

This shift matters: psilocybin is currently stuck in Schedule I of the Controlled Substances Act—the “no medical use, high abuse potential” category reserved for the likes of heroin. Advocates are pushing for a move to Schedule II, which still means tight controls, but opens the door to medical use and, crucially, patient access under federal Right-to-Try laws.

Dr. Aggarwal’s legal team isn’t hiding its optimism. They point out that psilocybin already carries the FDA’s “breakthrough therapy” designation for certain mental health conditions, and that the data from clinical trials is piling up in favor of rescheduling. The hope: a swift review that sets the stage for rulemaking.

The politics here are notable. HHS is now helmed by Robert F. Kennedy Jr., who has publicly supported broader access to psychedelic medicine. He’s joined by FDA Commissioner Marty Makary and VA Commissioner Doug Collins, who have also spoken in favor of finding a pathway to access. In other words, the bureaucratic winds may finally be blowing in the advocates’ direction.

For Aggarwal and his patients, this milestone has been a long time coming. As he quipped on social media: “It took us 3.5 years from time of filing to clear this step. Here’s hoping to swift review and smooth sailing from here on out.”

In Washington, “swift” is a relative term—but for patients facing terminal illness and veterans struggling with PTSD, every step closer to access counts.

📈 Dog Walkers

$LEEEF ( ▼ 1.73% ) Brings It Home

What’s Going On Here: LEEF Brands had a quarter that can only be described as “plant now, profit later.” Revenue climbed 10% year-over-year to $8.7 million, fueled by a healthy 19% bump in unit sales. But not all was rosy—gross margins slipped to 24% (down from 34% a year ago) thanks to pricier biomass. The good news? Those margins are expected to fatten up in Q3 as Salisbury Canyon Ranch—the company’s massive farm project—starts feeding the supply chain with in-house material instead of costly outside sources.

Losses narrowed nicely, with a $2.9 million net loss, nearly half the red ink spilled in Q2 2024. Adjusted EBITDA, however, flipped negative at ($1.2) million, reflecting ramp-up costs tied to farming and expansion in New York. Speaking of which, LEEF locked down a New York license in June, positioning itself to crank out concentrates in one of the country’s fastest-growing markets.

On the leadership front, veteran operator Josh Keats joined as COO, bringing two decades of cannabis experience to help scale operations.

And for a twist? LEEF is dabbling in Bitcoin, holding 4.4 coins with a six-figure cost basis per token. Call it diversification—or just keeping things interesting.

These Are Not Serious People

What’s Going On Here: Massachusetts may be on the verge of a cannabis plot twist worthy of its own Netflix mini-series. Two newly filed ballot initiatives—both branded “An Act to Restore A Sensible Marijuana Policy”—are aiming to roll back recreational legalization. Translation: the Bay State could go from “puff, puff, pass” to “puff, puff, penalty.”

If passed, the measures would repeal the laws that legalized, regulated, and taxed recreational cannabis back in 2016. Adults could still carry an ounce (and gift it, discreetly), but anything more would bring fines and confiscation. One version even proposes THC caps on medical cannabis—30% for flower, 60% for concentrates, and no supercharged edibles beyond 5mg per serving. In other words, goodbye to the brownie that bites back.

Of course, the path from petition to ballot is as tangled as a grow room’s extension cords. Proponents need over 74,000 signatures this fall, legislative review in 2026, and then another round of signatures if lawmakers punt. And even if it makes the ballot, they’ll have to convince voters—65% of whom told pollsters they still support legal cannabis.

Meanwhile, the Cannabis Control Commission is mired in scandal, adding fuel to reformers’ fire. Still, odds are voters won’t easily snuff out their legal stash.

🗞️ The News

📺 YouTube

Cannabis Debate Moves Into Mainstream America | TDR Cannabis in 5

What we will cover:

✅ Cannabis rescheduling 2025 is dominating headlines, with Trump world signals, Mike Tyson’s push, and investors eyeing what Schedule III could mean for cannabis stocks. In this episode of TDR Cannabis in Five, powered by Dutchie, host Shadd Dales breaks down the latest on Trump cannabis rescheduling news, DEA updates, and what it all means for reform, veterans, and the markets.

What began with Mike Tyson calling on Donald Trump to act on cannabis reform has grown into a full-scale national conversation. Tyson’s push for rescheduling, clemency for non-violent offenders, and safe banking access quickly caught fire, generating coverage in both the Wall Street Journal and the New York Post. Suddenly, cannabis reform wasn’t just industry chatter—it became a headline issue for voters, investors, and policymakers.

Trump world advisor Alex Bruesewitz added to the momentum, tweeting about Schedule III while facing questions about ties to pro-cannabis PAC funding. Roger Stone voiced support, while conservative commentators like Matt Walsh and Charlie Kirk pushed back. Even Bill Maher joined in, joking that he may have played a role in shifting Trump’s thinking.

The result? Cannabis rescheduling has moved from policy circles into mainstream political and cultural debate. The key question now is whether this issue is becoming as important to Americans as the economy or even the war in Ukraine. With bipartisan support, rising investor interest, and cultural recognition, cannabis reform may be entering a truly historic moment.