Behind the Scenes

D.C efforts continue as the world watches.

Daily Recap

Cannabis industry observers know one of the great benefits of federal rescheduling is that companies will finally be able to deduct ordinary business expenses on their tax returns—but what if we don’t have to wait for the rescheduling process to be finalized for the industry to achieve tax fairness on par with businesses in other sectors?

Justin Botillier, co-founder and CEO of Calyx CPA, argues that, while not without risk, the opportunity for U.S. cannabis companies to amend past returns and seek refunds is real and for some,the potential relief could be significant, particularly given the DOJ and ALJ already determined there is enough evidence to move canna to Schedule III.

“If cannabis no longer meets the definition of a Schedule I or II substance, then 280E no longer applies, regardless of its formal classification.”

Florida, Man

A regulatory framework for hemp-infused products is ready for consideration on the Florida House floor. The House Commerce Committee unanimously advanced both a policy-focused bill and a taxing structure that would impact the manufacture and sale of contents containing THC available in the consumer market.

“Bad actors from outside the state have been using the laws regulating the sale of hemp as a backdoor to sell products that are as or more intoxicating than Florida’s medical marijuana program. These bad actors are packaging their products to look like products that are marketed to children, such as cereal, Doritos, other snacks and candy.” Rep. Michelle Salzman (R)

Safety Dance

Legalizing marijuana in Pennsylvania will help the state mitigate public health and safety concerns associated with the illicit market, including the fact that unregulated products can be laced with fentanyl, a Democratic lawmaker behind a forthcoming reform bill says.

It will also provide a much-needed revenue stream and create tens of thousands of jobs, she says, restating the obvious.

Raven’s Flock

The Maryland Governor signed a series of canna bills, including one that will require state officials to automatically shield records for low-level marijuana convictions and broadly expand expungement eligibility for other offenses.

Gov. Wes Moore (D) approved a separate bill to clarify policies around consumption lounges, map a plan for another cannabis licensing lottery round and allow adults to manufacture marijuana edibles and concentrates for personal use.

Stocks & Stuff

It was another volatile day on Wall Street, as two-sided headline risk continues to whip around asset classes like penny stocks—while the actual penny stocks that are most of the cannabis space, unfortunately, wrestled with a still-unsustainable status quo.

Below, we’ll top-line today, talk through the tariff toggle, finger the source of stealth supply suffocating our sector, unpeel the recent legislation, share recent results from the ATB investor survey, and share a D.C. step in the right direction.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $4M

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