Engine Room, More Steam!

Canna earnings kick into full gear.

Daily Recap

It appears likely that the federal government will reschedule cannabis, congressional researchers say in a new report, but Congress still has the authority to address the gap between federal and state cannabis policy “before or after” that reform is enacted.

“As Congress considers these questions, states may continue to act on legalization. No state has reversed its legalization of either medical or recreational cannabis at this time.” The Congressional Research Service (CRS)

Uno Más, Por Favor

At least 44 Democrats and 15 Republicans in the U.S. Senate likely support legislation to provide safe harbor to financial institutions servicing state-legal canna businesses, while the stances of another nine senators remain somewhat uncertain.

Schumer appears gung-ho on pushing through the incremental reform, which he co-sponsors with 35 other senators, and the positions of those nine senators are pivotal for passage: The bill needs one more vote/ co-sponsor to squash a filibuster.

Follow the Money

States have generated more than $20 billion in adult-use marijuana tax revenue since the first markets opened a decade ago, per MPP, and said that in 2023 alone, states collected over $4B in adult-use canna tax revs—the most ever in a single year.

Mexicali Blues

Federal law enforcement agents intercepted a record low 61,000 pounds of cannabis at the southern border in 2023, which represents a 29% decline from 2022 and a 98% decline in seizure activity since 2013, when the agency reported bogarted more than 2.4 million pounds of cannabis.

Stocks & Stuff

Earnings season is officially underway in Cannaland, not that you could tell by today’s price action. U.S. canna ETF MSOS traded in an tight range all session before landing on the righteous side of the flatline, but not by much.

Below, we’ll chew through today’s price action, recap an active earnings cycle, sniff at SAFE Banking, check on technicals and our explore next steps.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $103M/$73M

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