Happy Wednesday, everybody.
In this one, Zack breaks down what’s going with D.C.’s will-they, won’t-they, cannabis market.
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 1,092 words or about a 6.5-minute read.
💡 What’s the big deal?
D.C.
Congress blocked a D.C. retail market...again
Driving the news: In yet another case of prohibitionist lawmaking riding the coattails of ongoing Congressional budget battles, a recent appropriations bill for the Financial Services and General Government, National Security, Department of the State and Related Programs continued the decade-long tradition of Congress opposing a cannabis market in Washington D.C.
Back up: Voters in Washington D.C. legalized cannabis during the 2014 election, but at the time, the Republican-controlled House opted to block access to a commercial market for all adults.
The language of the spending bill specifies that no federal funds distributed to D.C. may be used to allow for the recreational use of any schedule I substance or "any tetrahydrocannabinols derivative."
A murky future: Given the specificity of THC products, rescheduling may not impact the rule.
On the other hand, the Congressional Research Service suggested that rescheduling would allow legalization in D.C. in a 2024 report.
On the honor system: Washington D.C.'s Alcoholic Beverage and Cannabis Administration allows medical patients in 40 other states to use their credentials to purchase in the District. The administration also allows non-residents to self-certify that any purchase of cannabis would be for medical use.
The District has slowly worked toward legitimizing its cannabis market, even as they remain technically unable to sell to recreational consumers. For years, the District allowed gifting shops to exist in a vibrant gray market, where customers would come in, ostensibly pay for something legal, such as a t-shirt, coupon, or NFT, and also receive cannabis.
On paper, the cannabis was a gift.
In 2024, the District created a pathway for gifting shops to obtain a medical operator license. By early 2025, the District began cracking down on shops that declined to become licensed operators. Last week the District announced the 100th shut down of an illicit shop.
The bottom line: As long as Congress continues to defy the will of the residents of Washington D.C., the District government will likely continue to find ways to provide greater access to cannabis in the nation's capital.
-ZH
📣 Quotable
“You have a right to lie under the First Amendment,” Maine Democratic Sen. Craig Hickman said, in a quippy response to allegations that organizers of a campaign to gather enough signatures to repeal cannabis legalization in Maine are misrepresenting the push.
State lawmakers asked the Secretary of State to investigate. Similar campaigns are ongoing in neighboring Massachusetts as well as Arizona.
✍️ Apply for the waitlist today
On January 29th, Gotham and Cultivated will host our inaugural event: The Highrise.
The Highrise’s goal is to host an event where attendees represent the full breadth and depth of the cannabis industry in New York and throughout the country.
Yesterday, we let those that were accepted know that they had seven days to buy their tickets. (If that’s you — be sure to make that purchase before Sunday night.)
If you still want to be be on the waitlist get your application in today » thehighrise.nyc
⏩ Quick hits
New York Governor Kathy Hochul announced her plan to create a certified business incubator hub network to bolster cannabis operators during her State of the State speech. She also announced her plan to build a Center of Excellence for Cannabis Care and Health Equity, to train clinicians on medical cannabis use.
New Jersey Governor Phil Murphy signed a bill into law on Jan. 12 that ensures cannabis employees in the state have a right to organize.
Montana’s sold more than $1 billion worth of cannabis since the market opened four years ago, the Montana Free Press reports.
GOP Rep. Jim Baird filed a bill that would delay the implementation of the hemp-derived THC ban for another two years to allow companies to plan for the change or advocate for new policy.
🗓️ Don’t miss
We’ve rescheduled our rescheduling webinar for Thursday, January 15: Banking Implications of Cannabis Rescheduling: What’s Next?. We’ll chat with Shield Compliance CEO Tony Repanich, Blank Rome LLP Partner Scott Rome, and Dutchie VP Bryan Barash.
This webinar will break down what rescheduling actually means for cannabis banking, financial services, compliance, and operator access to capital. Moving past the headlines, this session focuses on what changes immediately, what doesn’t, and how banks, operators, and advisors should prepare for the next phase of normalization.
📺 In case you missed it
Jeremy spoke with Sunderstorm CEO Cameron Clarke about the company’s recent acquisition of Lime and what’s on tap for cannabis brand M&A.
🚀 Deals, launches, partnerships
Verano launches Swift Lifts as a standalone pre-roll brand, rolling out multiple size formats across five core markets (with more to come) as it pushes deeper into the industry’s fastest-growing product category.
Jeeter officially launches in Missouri, rolling out with more than 70% market coverage on day one through an exclusive partnership with Elevate, alongside statewide retail activations as the top pre-roll brand deepens its national expansion.
🧑⚖️ Lawsuits
Connecticut-based Crisp Cannabis agreed to a $416,000 settlement with their home state after failing to properly report a transfer in ownership after the company acquired another one of the state's few retailers.
Boston Attorney Thomas Kiley filed a lawsuit against a Massachusetts campaign to put recriminalization on the ballot, amid allegations that campaigners misled voters who signed in support of the measure. The campaign's attorney reportedly said the plaintiffs failed to offer sufficient proof of the alleged deception.
🧳 People moves
Fresh off a recent acquisition, Wyld promoted Erin Weaver to director of Strategic Partnerships.
🧪 Science & research
Glass House Brands announced that they are continuing their partnership with the University of California Berkeley to research variations in cannabis yield between indoor, outdoor and mixed-light cultivation systems.
Gelteq, an Australia-based pharmaceutical company, announced that it found positive results in its study of effectiveness of gel-based oral delivery of cannabinoids.
Dutch researchers sampled German and American rap videos and found 41% had depictions of cannabis and nicotine. The study was published in the journal Substance Use and Misuse.
📰 What we’re reading
The Numbers: Once Again People Bought a Shitload of Weed in Mass | Talking Joints Memo