Daily Recap
The 2018 Farm Bill legalized hemp for commercial and industrial uses such as textiles and grain, distinguishing it from cannabis, which is still federally illegal and as of now, listed as a Schedule I narcotic in the Controlled Substances Act (CSA).
The definition of hemp in the Farm Bill is that it contains less than 0.3 percent delta-9 THC (meaning it’s not gonna get you high) but the law of unintended consequences evolved into synthetic adaptation and ground cover for the crime rings and cartels.
Congress has an opportunity to close the loophole that it created. Lawmakers should seize it to protect our children, curb substance abuse among adolescents and realign the law with its original intent, which was to unlock the most agile plant in the world.
Tuned in Texas
The Republican governor of Texas said “stay tuned” on future action to regulate hemp products containing THC after the legislature failed to address the issue this year.
Even after lawmakers were unable to pass legislation to address intoxicating hemp in two consecutive special sessions convened this summer, the governor has called for a regulatory model focused on age limits and public health.
Banks a Lot
A Democratic congresswoman is criticizing the exclusion of provisions that would protect banks that work with state-legal cannabis and hemp businesses from a key spending bill that advanced last week.
During a House Appropriations Committee markup of the legislation, Rep. Betty McCollum (D-MN) said she was “disappointed” about the omissions.
“Without this commonsense legislation, which has been included in past bills, this bill fails to ensure that all businesses have access to financial services.”
Form Factor
THC beverage sales in the U.S. exceeded $1 billion in 2024 and is forecast to expand exponentially. Most brands averaged $2M in sales, with top brands easily exceeding $10M, according to a report by Whitney Economics.
“The emergence of THC beverage products has provided a solution that helps backfill declining revenues across multiple industries, including beer, wine and distilled spirits.”
Stocks & Stuff
It was a quiet, contemplative session as great expectations of federal reform came and went with another weekend. After a sizzling August for the space, September has been more of a show me month as the space backs-and-fills on lighter volume.
Below, we’ll chew through great expectations, contextualize the recent volatility, sniff the implications of the Curaleaf S&P/TSX inclusion, and examine the coming debt cliff.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $25M
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