Good morning.
Join us later this morning on Cultivated Live as Gail Rand breaks down this quarter's cannabis industry gross margin analysis and she'll dig into what's behind the latest report. See you there »
Let’s get to it.
-JB, JR
This newsletter is 935 words or about a 7.5-minute read.
💡 What’s the big deal?
HEMP
Hemp gets its one month reprieve. Now comes the hard part. 🌿
What happened: The House on Tuesday passed a federal funding bill that would delay the ban on hemp THC products by about a month, to December 11.
Despite protests from anti-cannabis Republicans like Rep. Andy Harris over the hemp ban delay the bill passed 370-48.
Why it matters: The bill now sets off a one-month shot clock for legislators to come up with a bill regulating hemp THC products that everyone can agree on. That’s far easier said than done.
Hemp THC products are available in most states. But the traditional, state-regulated cannabis industry says these sellers are skirting the rules. Hemp THC companies say they’re trying to build businesses as the law allows. Others are using the law as a way to make a quick buck, selling synthetic THC, or “gas station weed” to minors.
There are already numerous, bipartisan bills floating around both chambers to rectify the issue. While these have little chance of standalone legislation, they could become part of the next Farm Bill or another hefty omnibus bill.
What they’re saying: “One month is not much time,” Cornbread cofounder Jim Higdon said.
“Still, it gives us the chance to work on this issue after Election Day to build a long-needed regulatory framework that preserves interstate commerce for low-dose hemp THC beverages and full-spectrum CBD products
Cann CEO Jake Bullock advocated for regulations that would set federal standards for hemp-derived THC drinks, like his products, and would ban inhalables. Obviously, that framework would benefit Cann, but it also may be workable.
And ATACH, a cannabis industry trade group, decried the move. “While we're disappointed, our sights are set on December,” Chris Lindsey, VP of Policy and State Advocacy, said. “The loophole empowers bad actors, threatens public health, and undermines state regulations.”
Our take: In an ideal world, THC would simply be regulated as THC at the federal level no matter the source. Hemp and cannabis, remember, is a legal distinction — it’s the same plant.
But America in 2026 isn’t an ideal world. So a good compromise would be to allow the responsible companies to sell their products, tested, age-gated, and potency restricted, while getting rid of the synthetics. That’s at least workable.
What’s not workable is the status quo.
-JB
📣 Quotable
You’ve probably noticed an uptick in reporting about the “harms” of cannabis legalization in the mainstream media lately as federal rescheduling looms. That’s not an accident — it’s a sign that prohibitionist groups, led by Smart Approaches to Marijuana and their ilk, are playing a strong PR ground game.
Cannabis advocates and the industry should learn from that. Speaking only in terms of dollars and cents could help specific cannabis companies, but it’s also a way to lose the broader battle of public support, Jeremy explained on last week’s This Week in Cannabis Live:
⏩ Quick hits
Headset settles PPP fraud claims for about $1 million
Cannabis analytics firm Headset agreed to pay about $1 million to resolve claims it was ineligible for a PPP loan it received in 2021, since federal law bars cannabis businesses from the program. The whistleblower suit was filed by a competitor, Sidesolve, which stands to collect 10% of the recovery.
Ohio dispensaries still selling THC above state cap
A report from Gravitas Investigations found all 30 Ohio dispensaries it checked selling or advertising products above the state's 70% THC potency cap under Senate Bill 56, citing labels and state-required certificates of analysis rather than independent lab testing. A follow-up sweep of all 210 active Ohio dispensaries in May found every one still advertising at least one non-compliant product, averaging 89.7% THC on the top listing.
🚀 Deals, launches, partnerships
Grön launched its best-selling Pearls edibles simultaneously in California, Colorado, Michigan and Nevada, the largest multi-state expansion in the brand's history. The rollout comes a few months after the company was acquired by Wyld.
The Empire State Green Standard Alliance announced on LinkedIn that they’ve reached the 1,000 milestone. Kudos to the GSA.
🔬 Science & research
Per se blood limits don’t catch THC impairment 🚓
New research in JAMA Network Open found that drivers given THC gummies showed measurable impairment at 10mg and 20mg doses while their blood THC stayed below most legal per se limits, topping out at 3.4 ng/mL against thresholds of 2 to 5 ng/mL. Drivers also reported feeling less willing to get behind the wheel as their dose increased, even at just 2mg.
It’s another data point that 1) cannabis does impair driving, and 2) blood testing, because cannabis is fat soluble, has little relevance on someone’s relative impairment. It’s a thorny problem for policymakers as the rescheduling decision looms. Read the full study »
🧳 People moves
Cannara Biotech named Nicholas Fozard as Chief Financial Officer, effective upon Health Canada security clearance, succeeding Nicholas Sosiak, who moves fully into COO. $LOVE.TSX ( ▲ 0.5% )
📰 What we’re reading
How troopers identify marijuana-impaired drivers as Ohio's legal cannabis market grows | Journal-News
This startup wants to be the DoorDash of weed | GreenState
A ballot question could get rid of recreational weed in Mass. Cannabis consumers would like a word. | The Boston Globe
Beware of this ‘miserable’ complication of long-term cannabis use | The Washington Post