👎 Another WSJ editorial on cannabis misses the mark

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May 5-7 | Cultivated @ MJ Unpacked
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WALL STREET JOURNAL
Another WSJ editorial on cannabis misses the mark 👎

The recent Wall Street Journal editorial "Marijuana is for Dummies" raises legitimate concerns about adolescent brain development but draws the wrong policy conclusions.

First, the article presents cannabis regulation as a binary: Either it's a complete free market, or it's prohibited entirely. But the real question is how marijuana is regulated — including sales restrictions, marketing constraints, tax policy, and other targeted incentives that nudge consumers toward safer alternatives — not whether to regulate it at all. 

Smart regulation should minimize negative externalities and seek to capture benefits in any policy framework. Marijuana policy remains the same, and President Trump's move to reclassify cannabis from the most restrictive Schedule I to the less restrictive Schedule III follows medical science and is a step in the right direction.

On teen use: the details matter. Research on Canadian legalization found that provinces permitting edibles saw a modest increase in adolescent use, while Quebec — which banned edibles and imposed stricter marketing restrictions — saw teen use fall. Regulatory design drives outcomes. The 38% spike in California cited in the editorial reflects a specific referendum in a large state with unique regulatory choices, not an inevitable result of legalization.

Well-regulated dispensaries check IDs. Neighborhood dealers don't. The policy question isn't whether cannabis carries risks, it does, but whether prohibition or a regulated market better protects young people. The evidence favors regulation, done carefully.

-JB

“If you do look at the public polling on this issue, it is overwhelmingly popular with the vast majority of Americans,” White House Press Secretary Karoline Leavitt told reporters on Friday regarding rescheduling.

Yesterday, we erroneously included an old quote. We apologize for the error.

LIT ALERTS*
4/20 sales up 82%+ from 2025

The numbers are in and 4/20 2026 was a nice rebound from 2025's slump.

Lit Alerts analyzed 14 markets in the Northeast, Mid-Atlantic, and Midwest and 4/20 2026 was a clean sweep in every state, for both estimate units and estimated revenue. 

In 2025, 4/20 landed on Easter Sunday, an overlap that dampened day-of sales and nudged consumer spending into the preceding days out of necessity. In 2026, 4/20 landed on a Monday with many predicting another dismal performance. 

All 14 states posted positive YOY growth on both the 4/20 window (4/17-4/20) and the 4/20 day itself. The aggregate 4/20 day alone grew +82.3% across the footprint ($31.6M  > $57.5M), with 10 of 14 states posting triple-digit or near-triple-digit day gains compared to the previous year.

4/20/2026 became the single biggest revenue day of the year in New York, Massachusetts, Vermont, New Jersey, and Illinois, displacing Green Wednesday and Winter Storm Fern stock-up days that had dominated those leaderboards.

Even so, context cuts both ways.

Across the 14 markets Lit Alerts analyzed, even with the 2026 bounce, only 5 states now rank April 20, 2026, as their single biggest sales day of the past year. And in growth markets like New York, expect Green Wednesday 2026 to outrank 4/20 2026.

*To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.

DEA opens dispensary registration portal 
The DEA's medical dispensary registration portal opens April 29, with application instructions already live. The $794 annual fee covers a seven-section online application including business information, state licenses, compliance procedures, and security measures — and for now, PayPal is the only accepted payment method. The move is the latest sign the agency is pushing ahead quickly following last week's rescheduling announcement. Here are the instructions. 

Treasury and IRS to issue rescheduling guidance
The Treasury Department and IRS confirmed they will release guidance on how Schedule III reclassification affects cannabis businesses, particularly around the long-despised 280E tax provision. Operators have waited years for this clarity. Details on timing and scope are still forthcoming.

Tennessee governor doubles down against reform
Tennessee Governor Bill Lee signed legislation further restricting cannabis reform efforts in Tennessee, tightening penalties and closing perceived loopholes. The state remains one of the most hostile to any form of cannabis legalization. A reminder that federal progress doesn't guarantee state-level momentum.

British public increasingly backs legalization
New YouGov polling shows a majority of UK adults now support cannabis legalization, with support climbing steadily over the past decade. The data arrives as political appetite for reform remains lukewarm.

The Trump Administration just signed an executive order moving medical cannabis from Schedule I to Schedule III — and the industry is still unpacking what it actually means.

In the inaugural episode of Rescheduling: What's Next? We sat down with Mike Feldman, General Counsel of Nabis, the largest cannabis distributor in the United States.

Señorita launches 1777 spirits 
Señorita, the hemp-derived THC margarita brand from RYTHM, is expanding into spirits with 1777, a non-alcoholic THC spirit launching ahead of Cinco de Mayo. The 750mL bottle, crafted by winemakers Joel Gott and Charles Bieler, delivers 10mg of THC per 1.5 oz serving with agave, Mexican lime, dragon fruit, and Acapulco Gold terpenes, and is available via direct-to-consumer shipping and at Binny's. $RYM ( ▲ 7.59% )

Thanks to the team for sending an early look to the Cultivated HQ. We’re excited to try it!