The Hemp Bill Hits

Sen. Wyden drops his draft.

Daily Recap

Sen. Ron Wyden (D-OR) introduced a new bill that would create a federal regulatory framework for hemp-derived cannabinoids, allowing states to set their own rules for products such as CBD while also empowering the FDA to ensure that certain safety standards are met in the marketplace.

Rather than impose an outright federal ban on hemp products containing traceable amounts of THC, as has been proposed in recent months, Wyden’s bill would offer a regulatory pathway that many hemp stakeholders view as more sensible.

Up in Smoke

Members of the California hemp industry—including Cheech and Chong’s cannabis company—filed a lawsuit seeking to overturn new regs that outlaw most consumable hemp products, including those containing any intoxicating cannabinoids.

Newsom’s emergency ban won official approval from Cali Office of Admin Law on Monday and took effect immediately. The rules prohibit hemp products with any “detectable amount of total THC,” while hemp products that don’t contain THC are limited to five servings per package and may only be sold to adults 21 and older.

Feed the Turtle

Maryland collected $22.4M in cannabis taxes from April to June 2024, marking a 52% increase compared with revenue collected in Q124. Despite the surge, local govts still receive only a tiny portion of the revenue.

Adult-use cannabis in Maryland carries a 9% sales tax, which supports several State funds. Local governments, however, receive just 5% of that revenue, which is among the lowest shares nationwide.

Viva Las Vegas

A new report confirms that Nevada has been suffering a multiyear downturn in its cannabis trade since the end of COVID-19 but it now predicts a brighter tomorrow, with a shrinking illicit market and more growth for the legal framework.

While sales appear to have leveled out in the short term, “projections show a reversal of that trend, with growth estimated to continue through 2030, as well as a projected increase in the number of consumers.”

Stocks & Stuff

Cannabis stocks fell for the first time this week, with U.S. canna ETF coughing up 3% to pin $7. Since the HHS leak in Aug. ‘23, the ETF has seen rallies of 105%, 56%, 77%, 50%, 37%, 20%, 19%, 20%, 26% and 21%, and drawdowns of 50%, 22%, 31%, 24%, 23%, 34%, 17%, 24% and 23%, and as of this post, it’s 2024 YTD return is just about…

Below, we’ll top-line the landscape, check on some levels and take a deeper dive into the Hemp Bill for a read-through on things like low-dose hemp beverages and current state-legal operations, as well as the potential timing of next steps.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $50M

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