GOP Smoke Signals
Conservative lawmakers are sending signs.
Daily Recap
“When it comes to cannabis policy, it’s time for the Trump administration to do what the feckless Biden administration couldn’t and wouldn’t. I’m of course talking about moving marijuana out of the dark ages and into the reality of the present tense and that means, quite simply, moving marijuana from Schedule I to Schedule III.
The current administration under the leadership of President Donald J. Trump has shown a willingness to modernize the federal government, make it more efficient and to take bold steps to protect Americans.
I’m proud to be helping make that happen in Congress.
The time to reschedule marijuana is now and frankly, it makes no sense to wait any longer. Rescheduling marijuana from I to III is not only the smart thing to do, it is the right thing to do.
Rep. Randy Fine (R-FL)
That Op-Ed from a Florida Republican on Newsmax, a conservative outlet, followed a similar endorsement yesterday by another GOP lawmaker, Brian Mast (R-FL), who said on a different conservative platform,
“By rescheduling, [Trump] will expand patient access and advance his “America First” agenda at a pivotal moment. I stand with Mr. Trump’s pledge to reschedule cannabis, a promise he reaffirmed during a recent press conference, recognizing its medical benefits and the opportunities it creates for jobs, medicine, and research.”
A New York Minute
Following years of a clown show hiccups and false starts, seed-to-sale tracking is coming to New York’s $1.5 billion cannabis market in December, regulators said.
Observers have fingered the lack of such oversight as the “dirty secret” at the heart of ongoing diversion and inversion issues. Supporters say that it will be more difficult for illicit or out-of-state cannabis to be sold in New York stores post-implementation.
Over the Rainbow
Rep. Dela Ramirez (D-IL) is the latest to cosponsor of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, bringing the total support for the measure to 55 lawmakers across 25 states.
The bill, introduced in August, would deschedule cannabis and allow each state to determine its own policy while also clearing past federal cannabis convictions. The proposal has more sponsors than all the other canna-related bills combined.
Stocks & Stuff
The U.S. economy grew at its fastest pace in nearly two years in the second quarter, paced by consumer spending and business investment. The stock market, hoping for further rate cuts, grumbled at the good news and the major indices edged lower.
U.S. cannabis ETF MSOS was up 8% when we fired up our systems at 5:00 AM ET but those gains were coughed up by the opening bell. By the end of the session, the ETF had lost 8% which, in addition to the symmetry, gave back yesterday’s upside flex.
Below, we’ll top-line today’s fray, chew through current risks and potential rewards, explore what, when and why a potential halo effect could manifest, compare multiples across industry sectors, and take a fresh look at cannabis valuations.
All that and more, just scroll down.
note: there will be no Cannabis Confidential tomorrow. Enjoy your weekend.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $45M
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