Uncle, Sam

Towels and cookies get tossed.

Daily Recap

DEA Administrator Anne Milgram has come under fire from GOP congressmen over the apparent divergence of opinion surrounding cannabis rescheduling. Per the AP, DEA deputies were informed in March the DOJ would sign the document instead of her, while the DOJ is understood to have overruled the DEA’s request for more time.

GOP congressmen Andrew Clyde and Ben Cline have written to Milgram to press for an explanation of why she failed to sign the proposals, while citing ‘grave concern’ over her repeated refusal to respond to questions’ from members of congress.

SAFER Neighborhood

Cannabis stores and products that operate in four-fifths of U.S. states are regulated by state rules and are not in compliance with the CSA or the FDA, and rescheduling from Schedule I to Schedule III doesn’t change the federally illegal status of marijuana.

After rescheduling, financial institutions may be more likely to take the risk of banking marijuana-related businesses but exposure to federal anti-money laundering and racketeering laws will persist, which is why SAFER Banking is still needed.

“The solution is the bipartisan SAFER Banking Act, which allows banks to provide services to the canna industry in states where it’s legal. Passing that legislation in Congress would address the ongoing legal limbo, while enhancing public safety, tax collection and transparency.” -American Bankers Association

Out of Africa

South Africa’s president signed a bill to legalize marijuana possession and cultivation.

The reform has been years in the making, with lawmakers well past a deadline after a Constitutional Court ruling in 2018 deemed the prohibition on simple possession and cultivation of cannabis to be unlawful, mandating legislative change within two years.

Hello, Cleveland

A group of rules that will guide the operations of Ohio’s adult-use cannabis program go into effect today, including one that gets rid of patient and caregiver registration fees for medical marijuana use.

That puts Ohioans one step closer to being able to purchase cannabis products from dispensaries, since another rule that went into effect today has to do with applications MMJ dispensaries will submit to become dual-use dispensaries.

Stocks & Stuff

The Maydays continued to mount into month-end as U.S. cannabis ETF MSOS slipped once again, this time almost 4%, as bears pressed bets and technical levels gave way.

The ETF has now lost one-third of it’s market value since the news broke that the DEA would reclassify cannabis one month ago.

Below, we’ll chew through today’s price action, contextualize the current pullback, see how SIII and Florida would impact the current valuation discount, track traditional pre-election canna cycles and check gently on our charts.

All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑PT Notional: $107M/ $76M

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