Good morning and Happy Canada Day 🇨🇦

As a programming note, we’ll be off on Friday and Monday for the Fourth. We hope you have a wonderful time grilling with your family, and safely enjoying your favorite cannabis products!

We’ll continue to bring you inside the room at the historic DEA hearings.

Let’s get to it.

-JB, JR

Today’s newsletter is 1,190 words or about an 9-minute read.

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💡 What’s the big deal?

DEA
DEA hearings continue. Here’s what happened. 👀

The DEA hearings to consider whether to move recreational cannabis to Schedule III continue. 

What happened: On Tuesday, Dr. Corey Burchman testified to the efficacy of medical cannabis for pain management and helping wean patients off of more dangerous opioids as a witness for the government supporting the rule, according to a number of sources in the room who I spoke with.

Why it matters: By definition, there only needs to be one accepted medical use for cannabis to be removed from Schedule I. That is the Currently Accepted Medical Use (CAMU) test the federal government uses to establish a drug’s classification. 

Opponents to rescheduling spent much of Tuesday attacking the two-part test federal agencies used in 2023 to determine cannabis belongs in Schedule III. Previously, drugs were considered under a five-part framework.

While it is true that cannabis likely wouldn’t survive that five-part test, as the FDA’s Dr. Dominic Chiapperino testified, that’s not because cannabis is unsafe or has no accepted medical use. It’s because of a flaw in the five-part test’s ability to conform to a botanical with multiple efficacious compounds, like cannabis, rather than a traditional pharmaceutical which is a single molecule, among other reasons.

Robert Mikos, a Vanderbilt Law professor, wrote about how the five-part test amounts to a sort of “tyranny,” as it demanded large-scale clinical trials to remove a drug from Schedule I, but Schedule I classification prevents those trials from being conducted.

The two part test looks simply at whether there is widespread medical use and research supporting that. Given the fact that medical cannabis is legal in some form in over 40 states, and the plethora of research showing efficacy for pain management, the two part test is easily satisfied.

What they’re saying: Opponents to the rule, like Smart Approaches to Marijuana’s Kevin Sabet, say the switch to the two-part test is evidence of politics intervening in a scientific process.

But the Department of Justice itself found that the five-part test is “impermissibly narrow,” for new drugs. That, plus the hearing isn’t about the test. It’s about whether cannabis satisfies the agreed-upon test.

No matter how much Sabet and SAM screech about the rule change, it is the rule. Under the old test, cannabis could never satisfy the standard. That, and the DEA has used the new two-part test for other substances than cannabis, which undercuts SAM’s argument. 

The bottom line: An attorney in the room told me that the opponents argument is like “ships passing in the night,” given that their argument about the switch to the two-part test isn’t material to the case. 

What’s next: Burchman will be subject to cross-examination by attorneys opposed to the rule change tomorrow, and anti-cannabis groups will present their case.

Expect their knives to be sharpened after today, sources say. 

-JB

In case you missed it

Jay talked to Alison Gordon of RIPPED about (not) chasing a big exit on Tuesday’s Cultivated Live.

Quick hits

Pennsylvania Senate Democrats try to force a cannabis vote 

Senate Democrats in Pennsylvania signed a discharge resolution meant to pry Sen. Sharif Street and Sen. Dan Laughlin's bipartisan cannabis legalization bill out of committee and onto the floor. The catch: Republicans hold a 27-23 majority and the maneuver doesn't actually compel a vote, it just forces the conversation.

Rhode Island State asks court to drop pot shop injunction 

Now that Gov. Dan McKee has signed a pair of bills scrapping Rhode Island's residency requirement for cannabis retailers, the Cannabis Control Commission is asking a federal judge to dissolve the injunction that froze its first licensing round. Around 100 applications are still in limbo and the commission now has 60 days to launch a new application process.

Israel reopens dumping probe into Canadian cannabis 💰

Israel's Commissioner for Trade Levies has reopened a dumping investigation into Canadian exporters including Tilray (TLRY), Aurora Cannabis ($ACB), Canopy Growth (CGC), Organigram($OGI), alleging a roughly 125% dumping margin. The catch: this comes less than six months after a district court rejected growers' attempt to impose a tax on the same imports, and an earlier push for tariffs as high as 165% already died last year.

AZUCA*
Fast-Acting Edibles Are Winning at Retail. Here's Why.

The numbers from Azuca's 2025 Edibles Premiumization Report — produced with BDSA — are striking: consumers pay 39% more at checkout for fast-acting gummies over other premium formats. 

These products generate 4–5x more sales per SKU than traditional edibles. Brands carrying them rank more than 100 spots higher in national sales rankings.

The driver isn't marketing. It's trust. 

When a product's effects show up on time, consistently, consumers come back.

That's the problem Azuca has been solving since 2018 with TiME INFUSION® — a proprietary encapsulation process that makes cannabinoids water-friendly and reliably bioavailable. Onset in 5 to 15 minutes. Consistent dosing across SKUs and state lines. More than 700 million servings delivered across global markets.

If you're building an ingestibles portfolio — or wondering why your current products aren't holding shelf — it's worth understanding what fast-acting technology actually means in practice.

→ Start at azuca.co

*sponsored

🚀 Deals, launches, partnerships

Cannabis trade group gets a New York State Fair booth 🎪

The Empire State Green Standard Alliance will run the first cannabis advocacy booth in the New York State Fair's history, offering consumer education on testing, labeling and where to buy legal products. The Fair draws nearly a million visitors a year, and GSA is recruiting licensed companies statewide to staff it with giveaways and materials.

📈 Market moves

Glass House became the second US cannabis firm to begin trading on the NYSE after Trulieve on Tuesday, by deconsolidating its medical and recreational assets. It was a good day: $GLAS gained about 5%, ending the day at $13 per share. Trulieve, for its part, gained 6% and ended at $9.8.

🧪 Science & research

New Yorkers love cannabis, don't read the label

A University at Buffalo study found most New York cannabis consumers can't correctly identify the state's required product labeling, with three-quarters mistaking California's label for New York's. Researchers say that confusion points to a meaningful chunk of buyers still sourcing from gray-market or out-of-state products mimicking legal packaging.

Five years on cannabis beats opioids for back pain

A retrospective Israeli study published in Biomedicines tracking 241 chronic low back pain patients found inhaled cannabis use sustained large, durable improvements in pain and disability over five years, with opioid use among the cohort falling from 100% at baseline to under 5% by year five.

📰 What we’re reading

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