The U.S. Cannabis Civil War

The industry approaches a tipping point.

Daily Recap

A bipartisan group of 20 state attorneys general are imploring Congress to take action to address a looming public health “crisis” due to the burgeoning multibillion-dollar market for intoxicating hemp products.

Congress legalized hemp under the 2018 farm bill, touting it as a boon for struggling farmers, but the market has become increasingly dominated by intoxicating products that are largely unregulated and often sold at gas stations and convenience stores.

“The reality is that this law has unleashed on our states a flood of products that are nothing less than a more potent form of cannabis, often in candy form that is made attractive to youth and children — with staggering levels of potency, no regulation, no oversight, and a limited capability for our offices to rein them in.”

This, we know.

Meanwhile, states continue to take matters into their own hands as the regulatory landscape begins to heat up. Among proposals now being considered:

California: An extension of emergency regulations that outlaws all hemp-derived THC.

Texas: A blanket ban on anything containing hemp-derived THC.

Florida: A ban on synthetic THC and restrictions on hemp-derived Delta-9 THC.

Georgia: A ban on hemp beverages as well as restrictions on synthetic THC such as delta-8 and delta-10 THC.

Arkansas, Kentucky, Montana, Tennessee: The imposition of a mandatory third-party distribution model – similar to what’s seen in the alcohol industry – as well as bans on direct-to-consumer sales.

And, Ohioans in state-legal cannabis businesses, poison control workers and religious organizations all testified in support of a bill that would regulate intoxicating hemp and drinkable cannabinoid products.

“Ohio’s legal cannabis industry is facing a crisis. Fake, pop-up, poser dispensaries are exploiting loopholes in hemp laws to sell cannabis while misleading consumers into believing they are licensed establishments.”

Poison Ivy

A new study uncovered yet another hidden health hazard in illicit cannabis: when investigating cannabis seized in Arizona and California, 16% of the samples were contaminated with the soil fungi Fusarium that exceeds safety limits.

Separately, 56% of THCA hemp flower purchased online tested positive for Aspergillus fumigatus—with no age checks, and zero safety testing involved.

Veteran Affairs

A new study shows that 40% of military veterans suffering from chronic pain report using marijuana to treat their symptoms. Most said they use cannabis to deal with pain, mobility and sleep issues, while a substantial numbers of vets also said that it helps them with PTSD, anxiety and stress.

98% of the participants said that healthcare providers should discuss the use of all-natural products with their patients. The other 2% shouldn’t be given rifles.

Stocks & Stuff

The stock market roared after President Trump said, “I may give a lot of countries breaks” from next week’s reciporcal tariffs and you know what that meant for the cannabis sector: absolutely nothing, as the investing universe couldn’t care less.

Below, we discuss the winter of discontent and the animus that has swallowed the space, offer perspective during these depths of despair, reflect on what was, think through what can still be, and explore a growing trend in M&A.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $4M

Top Stories