The Bumpy Cusp

There's a bull-bear battle in Cannaland

Daily Recap

The most significant shift in U.S. marijuana policy is drawing ever-so-closer with just one major obstacle remaining in reform’s way: the Drug Enforcement Administration.

Chris Roberts at MJBizDaily wrote a great overview of this process; a sampling:

Experts told MJBizDaily that an initial proposed rule could be issued by the end of the year and the process finalized by next spring.

What the DEA cannot do is reject the HHS recommendation outright.

Marijuana’s days as a Schedule 1 drug are ending. It’s only a matter of when.

This is all good news.

On the legislative front, all signs continue to point to SAFE Banking moving through the Senate Banking Committee the next few weeks. There was some speculation that the vote might occur as early as next week but that was dismissed late yesterday as we anxiously await “the next few days.”

Separately, GOP Congressman Dave Joyce (R-OH) is planning to introduce a revised STATES Act to protect state marijuana programs from federal interference. “The purpose of this measure is to promote states’ rights and send a message to the federal government that it should get the hell out of their way,” he said, speaking the truth.

The bill is still being finalized but when Rep. Joyce reintroduces it, he will attempt to build a strong bipartisan coalition that will help demonstrate to leadership he has the votes for passage and “hopefully get it to the floor.”

New York cannabis was again in the news after this headline crossed Bloomberg:

NY'S POT RULES OPEN RECREATIONAL MARKET TO NEW APPLICANTS

The move will expand the market beyond the first social-equity applicants with new applications starting in October. Additionally, the office’s chief of staff and senior policy director, Axel Bernabe—the architect of the state’s regulations since inception—announced his retirement.

The new rules will accelerate the timeline for big companies such as Green Thumb, Curaleaf, and Cresco to enter the market. They would still need to pay a $20M fee to apply—which is bananas—and meet other criteria, and they would be able to an open adult-use store next to one of their medical dispensaries ‘around the end of this year.’

In other news, New Mexico set a new marijuana sales record, with $48M in August; Cali is increasing incentives to get municipalities on board with cannabis licensing; Nebraska will begin it’s third attempt to legalize MMJ tomorrow; Latin America and Caribbean countries are rethinking their failed war on drugs after it didn’t achieve ‘expected results;’ once an enemy, the DEA now holds the key to rescheduling.

We also explore the global shift in cannabis as it moves from the underground toward a new ‘craze;’ look at why a reliable breathalyzer ain’t easy, but possible; review what you’ll need to know ahead of the Ohio vote in seven weeks; sniff at how the potential rescheduling will reshape company valuations; and we walk through today’s wild price action, spy more insider buys, update the short interest (that we can see), offer random thoughts on the tape, highlight an initiation, and explain why nutty is the new normal.

All that, and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ PT Notional: $188M

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