Path Dependent

The canna cave continues.

Daily Recap

President-elect Donald Trump’s choice to lead the Drug Enforcement Administration is a Florida sheriff who has strongly advocated for marijuana decriminalization, calling it the “right thing to do” as “society is evolving.”

And in little-noticed comments picked up by Marijuana Moment, he also argued more broadly that criminalization under the war on drugs “didn’t work.”

Order in the Court

The first step in the US’s landmark efforts to reschedule cannabis officially took place yesterday, setting the stage for what is set to be a lively and heated process.

While this initial session was to set schedules for the participants of future hearings, fingers were already being wagged. Some pro-rescheduling lawyers, including Matt Zorn, offered several points of contention that have already elevated the tenor.

Boies in the Hood

While cannabis rescheduling and legislative efforts have dominated the attention of industry stakeholders, an assortment of cannabis operators are attempting an end-around to the judicial branch this Thursday in Massachusetts.

Verano, which operates in 14 different states, along with Canna Provisions, Wiseacre Farms and cannabis courier Gyasi Sellers sued Attorney General Merrick Garland in U.S. District Court of Massachusetts on Oct. 26, 2023 seeking an end to the federal government's prohibition of cannabis.

Both sides of the case are preparing to present oral arguments on Dec. 5, before the First Circuit Court of Appeals. Those close to this legal process are hopeful that the case could find it’s way in front of the U.S. Supreme Court by this summer.

Penn Station

Two Pennsylvania lawmakers announced plans to file a new bill to legalize marijuana in the commonwealth to fulfill a “moral obligation” to repair harms of criminalization while also raising revenue.

Majority Leader Matt Bradford (D) said there’s a “will” in the chamber to “move forward” with reform and Reps. Rick Krajewski (D) and Rep. Dan Frankel (D) are circulating a co-sponsorship memo to build support for the forthcoming legislation.

"As a state that continues to criminalize recreational cannabis, Pennsylvania is now an outlier. 24 states have legalized the practice, including 5 of 6 states that border Pennsylvania. Legal or not, Pennsylvanians are consuming marijuana, whether by visiting our bordering states, buying unregulated hemp loophole products at gas stations and vape shops, or purchasing in the illicit market."

Stocks & Stuff

It was another soft session in Cannaland as bears set their sights on the post-election all-time lows and the bulls are eating their young attempt to find footing amidst the tax loss harvesting. U.S. cannabis ETF lost 4.20% and is now -38% YTD.

I wasn’t gonna publish a note today bc it felt like there wasn’t much new to add, but I decided to write bc these are trying times and as it turned out, there were a few items worth noting. So we’ll chew through those—and more—below.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $46M

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