Fox in the Hen House

Zorn uniquely positioned for the HHS.

Daily Recap

An attorney with a history of suing top federal agencies in pursuit of cannabis reform and government transparency is joining the Trump administration, serving under U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. as deputy general counsel, per Marijuana Moment.

Matthew Zorn, who is well known for taking HHS and DEA to court under the Biden and Trump administrations, representing scientists and military veterans to advance reform issues, will now be in a position to help promote key policy changes.

The cannabis rescheduling process passed through the HHS two years ago, where it was deemed healthier than alcohol, so the readthrough on his appointment is more of a tell on the forward direction of plant-based medicine in an RFK Jr. regime.

“The fact they hired him says something very important abt their positions on policy.”

Sugar Shane Pennington

Outside-In Globalization

The U.S. cannabis market is projected to grow from $32B in annual sales to ~$46B in three years, a 44% growth rate, according to BDSA—while the EU is expected to grow 115% over the same period.

While cannabis companies in the U.S. cannot transport product across state lines, EU business can grow the crop in one country and export products around the continent.

Boris Jordan, the founder and CEO of Curaleaf, recently said the European market “will eventually rival the U.S,” while Beau Whitney offered a more succinct take: “The US state-by-state market is dysfunctional—from an investment perspective, it’s high risk, low return, which is upside down.”

Take the Penn!

A Pennsylvania Democratic senator announced his intent to file a new bill to legalize cannabis in the state, calling on colleagues to join him after a Senate committee killed a separate House proposal to enact legalization with state-run stores—indicating that the new legislation will follow a more conventional regulatory model for cannabis.

“This legislation represents a commonsense opportunity to modernize our canna laws by delivering lasting economic benefits to communities across the Commonwealth while balancing individual liberty with public safety.”

Jed Eye

Tennessee’s hemp industry will take a major blow starting in 2026 after Gov. Bill Lee signed legislation on May 21 that not only will ban products with THCA and synthetic cannabinoids but also prohibit direct-to-consumer sales.

Under the new regulatory regime, hemp-derived cannabinoid product sales will be banned in convenience and grocery stores and be restricted to establishments that limit entry to individuals 21 and older or are licensed by the ABC.

“We have a situation here in Tennessee where we essentially are dealing with unregulated recreational marijuana with no regulation. It’s the wild west out there.”

Stocks & Stuff

It was a green day on Wall Street as EU trade hopes and economic optimism paced a broad rally in equities as bond yields faded, and Salesforce agreed to buy Informatica for roughly $8 billion.

Cannabis stocks continue to be left for dead given the silence-to-date from D.C., and the MSOS ETF finished the session -3% for the lowest close in a month.

Below, we’ll top-line the landscape, including recent happenings in D.C, Pennsylvania, and Texas, speak to the emerging opportunities for Canadian LPs and THC beverages, and try to quantify how much canna revenue has been bogarted by intoxicating hemp.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $11M

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