Seems Like Old Times

Cannabis awaits its moment in the sun.

Daily Recap

Former Rep. Matt Gaetz (R-FL), President Donald Trump’s first pick for U.S. attorney general before he withdrew from consideration, says there’s a “winning coalition” of libertarian-leaning Republicans and Democrats to federally legalize marijuana—but only if Democrats drop their push for social equity and “reparations.”

“Unfairly, cannabis has had to carry on its back the political burden of reparations. A lot of lawmakers in the Black Caucus favor reparations and want the revenue from cannabis taxation to function as the distribution system for racial reparations.

I think that it divides the coalition, right? You obviously have a winning coalition with libertarian-leaning Republicans like me and Democrats who favor legalization, but when you insist upon… giving licenses to Black farmers or making sure tax revenue goes to Black communities more than to white communities, you lose libertarians, and I think that’s one of the reasons why we don’t have the safe banking law.”

His views are not without merit—not after the Dems allowed the perfect to be the enemy of the good for four years. And it’s worth noting the distinction bw criminal justice (nobody should be in prison for a non-violent cannabis possession) and social justice, which is akin to legislating wealth.

Too Many Rules

Democratic congressional lawmakers have announced the filing of a bill that would remove a restriction that’s prevented the White House drug czar from advocating for the legalization of marijuana or other Schedule I drugs under the CSA.

“They’re not allowed to sponsor any research on Schedule I drugs. They can’t even talk about it, to show you how ridiculous is, and by law, they must actively oppose the legalization of any substance that is Schedule I and not approved by the FDA. We’re trying to remove that prohibition.” Rep. Dina Titus (D-NV)

Smoke Up, Johnny

A study conducted by the US Government found 80% of Americans who use cannabis smoke it as their primary method of consumption. The second most common was ingesting (edibles or oils), and nearly half of those surveyed use multiple form factors.

For thousands of years, people have consumed cannabis, and the methods used to transfer the active ingredients from the plant to the user have varied. Smoking a joint, or using a bong or pipe, has been the mainstay for most, but as normalization evolves, new consumption techniques, such as dabbing, have become increasingly available.

The total U.S. economic impact of regulated cannabis sales could top $124 billion in 2025, up 9% vs. last year, according to a recent MJBiz Factbook update.

…Or just drink

THC seltzers made by infusing THC into carbonated drinks have created a fresh subcategory of seltzers and a new means of consumption for cannabis. The THC beverage industry is expected to top $4 billion industry by 2028, according to a London-based market research company.

Only 18 states currently have hemp regulations, with many similar to alcohol, and tomorrow, we’ll chew through each individual state law that is currently in place or already in motion, as the uneven patchwork of U.S.A THC continues.

Stocks & Stuff

It was a green day on Wall Street, which continued a rebound for the ages. The S&P was -14% MTD a week into April, and it is now a kitten’s whisker from the flat line.

Take that, Karl Marx.

U.S. cannabis stocks were enjoying another quiet session until a midday headline hit and MSOS popped 15%. Afternoon leakage halved those gains but the ETF was able to reclaim a technical level and establish a higher low.

Below, we’ll top-line today’s move, explore a potential tariff storm that looms next month—and how that could impact cannabis companies—contextualize the status quo, and see why some investors are warming up to Canadian cannabis operators.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $45M

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