Daily Recap
A GOP-controlled congressional committee has scheduled a hearing to target what’s been a Chinese “invasion” of the United States through illicit cannabis operations.
The House Homeland Security Subcommittee set the hearing, titled “Invasion of the Homeland: How China is Using Illegal Marijuana to Build a Criminal Network Across America.”
These issues are being addressed as industry stakeholders await a POTUS decision on the proposal to move cannabis to Schedule III of the Controlled Substances Act (CSA).
Separately, when Congress returns from recess this month, the hemp industry will be closely monitoring provisions that could fundamentally reshape the entire sector.
“The outcome of the debates around those provisions will determine the future of hemp-derived products in the United States.”
Cali Sober
California lawmakers are shutting the door on delta-8 and delta-10 THC entirely, while other intoxicating hemp products will no longer be sold in smoke shops, gas stations, and convenience stores in the name of public health and safety.
Pending Gov. Gavin Newsom’s signature, AB 8 will outlaw synthetic cannabis products and inhalable cannabis products containing cannabinoids derived from hemp.
Turtle Soup
The Appellate Court of Maryland also ruled that delta-8 and delta-10 THC are illegal and state law that prohibits businesses from selling hemp-derived products without a license is constitutional.
The ruling reversed a lower court’s decision to grant a preliminary injunction to the Maryland Hemp Coalition and several hemp retailers who challenged the state’s licensing requirement under the Cannabis Reform Act.
Achtung Baby!
A survey of more than 11,000 German cannabis users has found that 88.6% acquired their cannabis legally in the past six months, suggesting the country’s reform efforts are successfully undermining the illegal market. 👀
The findings indicate that Germany’s Cannabis Act in April 2024 has achieved one of its primary objectives: removing the trade from the hands of drug dealers and into regulated channels.
Stocks & Stuff
It was a green day on Wall Street as Cannaland continued to consolidate following last month’s miracle whip. U.S. Cannabis ETF MSOS finished the session -1.5% (+8% YTD) as you could almost hear the patience thinning.
Below, we’ll top-line an active few weeks, contextualize the post-August pullback, see how recent events might impact forward timing, talk through a few potential vehicles, channel check U.S. canna sales, and look through to a more normalized world.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $41M
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