The Great Awakening
The THC genie is out of the bottle.
Daily Recap
Despite the legions of clickbait and Prohibition 3.0 takes, the United States didn’t ban hemp—nor did it ban THC. Americans who live in a state with legal cannabis will still be able to access their wellness products, and companies that operate in those states can still grow, process, and sell cannabis—THC included.
40 states, 4 territories, and D.C have legalized MMJ, while 24 states, 2 territories, and D.C have legalized adult-use. The recent legislation in the US—which won’t go into effect for a year—clarified the definition of hemp, which some view as a necessary precursor to the rescheduling of cannabis.
The Americans for Prosperity Foundation, founded by Charles Koch, is urging the U.S. Supreme Court to rule on the constitutionality of federal canna prohibition, arguing that Washington cannot criminalize activity that occurs entirely within a state. They’ve framed the dispute as ‘a test of core federalism principles, not cannabis.’
Make it Make Sense
Police in GA, LA, NC, PA, SC, TN, TX, and WI made over 100,000 marijuana-related arrests in 2024, with the overwhelming majority of those arrested low-level cannabis possession, not cultivation, trafficking, or sales.
TX led the nation in canna-related arrests in 2024 (26K) with 97% of all the arrests in for simple possession. Under Texas law, low-level cannabis possession is classified as a criminal misdemeanor, punishable by up to 180 days incarceration and a $2,000 fine.
Achtung Baby
Germany’s Bundesrat voted to support restrictions on medical cannabis prescribing and distribution, while rejecting proposals to ban prescriptions being sent via mail, a mixed outcome that offers both relief and concern for the emerging industry.
Stocks & Stuff
It was a wild ride on Wall Street as the crypto crash spooked the risk complex, but the market shook that off—as well as a red NVDA 0.00%↑—to close firmly higher.
U.S. cannabis ETF MSOS rallied 12% to eke out a small gain on the week but is still off 15% vs. last Thursday (-11% YTD) as canna confusion continues to circulate.
Below, we’ll top-line today’s fray, including a possible trigger for the price action, stare down the long odds, hear from two of the top CEOs in the space, explore the recent downtick in plant popularity, and update valuation metrics after the recent reset.
All that and more, just scroll down.
SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $31M
Top Stories
