DEA on Arrival

Administrative Law Judge demands answers.

Daily Recap

A DEA judge has ordered the agency to respond to new allegations that it opposes the Biden administration’s cannabis rescheduling proposal that it is supposed to be defending and that it had additional improper communications w reform opponents.

Just one day after a motion outlining allegations was filed by several witnesses that are set to participate in the hearings this month, the DEA Administrative Law Judge issued an order mandating that the agency replies by next week.

Plant over Pills

Legalizing medical cannabis appears to significantly lessen monetary payments from opioid manufacturers to doctors who specialize in pain, per published research, with authors finding “evidence that this decrease is due to medical marijuana becoming available as a substitute” for prescription painkillers.

“Medical marijuana legalization leads opioid manufacturers to decrease direct payments to physicians prescribing opioids. This is due to increased adoption of marijuana for pain management, indicating that opioid manufacturers perceive marijuana as a superior substitute and respond by reducing these payments.”

Chinese Peckers

Federal authorities say illegal marijuana grows are happening all over rural parts of the country, including Maine. There were dozens of illegal busts in the state in 2024, and many of the grow operations are tied to Chinese organized crime.

"It’s a national security threat. Why are the Chinese doing this? They’re doing it because it’s an easy way for them to launder money." Sen. Susan Collins (R-ME)

New New York

A newly filed bill in New York would allow future cannabis consumption lounges to sell non-infused food, non-alcoholic beverages and hold live concerts.

Under the current law, consumption lounge licensees are prohibited from allowing certain activities on their premises, including “gambling, contests, or fireworks.”

Stocks & Stuff

It was a red mess in Cannaland as trepidation surrounding the Deep State DEA, coupled with concerns that an announced closure of a sector ETF could lead to a wholesale liquidation of the underlying holdings, pressured the space.

U.S canna ETF finished the session -7%, slightly above the all-time closing low.

Below, we’ll talk through today’s particulars, check on top-line growth, examine the replacement theories (alcohol, opioids, cigarettes), touch on some perceived themes and get critical context on the ETF dissolution and its potential market impact.

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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