Good morning.
With the help of Claude, we combed through the 2,500-page rescheduling testimony to bring you what you need to know. It’s a doozy, including an anti-rescheduling witness who submitted Reddit pictures of a baby smoking a bong.
Let’s get to it.
-JB, JR
Today’s newsletter is 995 words or about an 8-minute read.
💡 What’s the big deal?
ON THE RECORD
DEA’s rescheduling hearing closes after eleven days of testimony

Driving the news: The full transcript of DEA's rescheduling hearing is out. With the help of Claude, we pulled out the ten things you need to know from the more than 2,500 pages of the transcript.
What happened: The DEA, which protected Schedule I for fifty years, was in the position of sending its own attorneys to argue the other side.
Acting Attorney General Todd Blanche's April 22 final rule already moved FDA-approved cannabis drug products and state-licensed cannabis to Schedule III. This hearing was only about recreational use, specifically whether cannabis satisfied the new, two-part CAMU test.
Seven interested parties opposed, including Smart Approaches to Marijuana and the states of Nebraska, Idaho and Indiana, who share counsel at Torridon Law.
What they're saying: "It is about regulation, not legalization," said DEA attorney James Schwartz in the government's opening.
The government also told the judge that whether cannabis has a currently accepted medical use is already settled, by a 2024 Office of Legal Counsel opinion it says binds both DEA and the judge.
Why it matters: This is the first time the anti-rescheduling coalition has been tested under oath, and the transcript is the record everyone argues from next. The government led with FDA's Dominic Chiapperino, who ran the ten-month analysis behind the Schedule III recommendation.
He testified cannabis produced the lowest number of overdose deaths of the substances reviewed. The same review ranked it second highest on emergency department visits, above alcohol, and the government's direct examination did not go there.
Several of the opposition's clinical witnesses gave ground on cross.
Kenneth Finn, the Colorado pain physician most cited in prohibitionist circles, was crossed in about eight questions and confirmed he has recommended cannabis to his own patients.
Pueblo emergency physician Karen Randall built part of her slide deck on images pulled off the internet, including a toddler with a bong sourced from Reddit. The DEA attorneys asked how she knew it was a real baby. She said she didn't.
Yale's Deepak D'Souza was the states' strongest witness and elucidated the psychosis argument clearly across two days.
On the final morning, DEA read him back an interview he gave earlier this year and asked if it was accurate. He said yes, including the part where he said most people who use cannabis use it in moderation and do not experience negative consequences.
Ed Wood, who founded DUID Victim Voices, delivered testimony DEA moved to strike and then declined to cross at all. His own Colorado data argues against per se THC limits, the position operators have held for a decade.
On the other side: The government did not walk away clean.
Torridon's Chase Harrington opened by noting that DEA's own pain-medicine witness, anesthesiologist Corey Burchman, said "I'm not a psychiatrist" four separate times while having recommended cannabis for PTSD and anxiety, conditions HHS found insufficient support for.
What's next: The judge will recommend a decision, though there’s no set date yet. On balance, the record appears to be the DEA lawyers defending rescheduling, and being quite surgical about defending against future attacks.
Still, if the judge does recommend rescheduling, expect there to be a fight.
-JB
💻 Cultivated Live
On Tuesday's Cultivated Live: Richard Hahn of the Niskanen Center returned to the cannabis policy work he started a decade ago — and the results are sobering. A clear-eyed, nonpartisan look at legalization's messy middle age.
📣 Quotable
“We’ve seen the lieutenant governor take hundreds of thousands of dollars from the alcohol industry, and that’s what drove the policy around the ban on THC,” Texas Rep. Vikki Goodwin said. “I am in favor of treating THC like alcohol.”
Goodwin, of course, was talking about Lt. Gov. Dan Patrick’s work to ban hemp-THC products. Read more about Texas and THC here.
⏩ Quick hits
OH cannabis sales top $4 billion as 2026 pace accelerates 📈
Ohio's legal cannabis market has generated more than $4.15 billion since sales began in 2019, with $777 million sold in the first seven months of 2026 alone. That's a 28% jump over the same stretch last year, split between $1.75 billion in non-medical and $2.4 billion in medical sales all-time.
🚀 Deals, launches, partnerships
Wiz Khalifa's Khalifa Kush launches THC drinks with Scofflaw 🤝
The debut can, Khalifa Kush & Orange Juice, takes its name from Wiz's 2010 mixtape and comes in 5mg and 10mg hemp-derived THC versions, launching on drinkkhalifa.com for $15 and $16 a four-pack. Scofflaw, an Atlanta brewer, holds the exclusive US license to make and distribute the line, with more flavors planned.
🔬 Science & research
Cannabis-positive traffic deaths rose in Connecticut after recreational legalization
A retrospective analysis of state medical examiner data found cannabinoid positivity in driver fatalities climbed from 32.8% before Connecticut legalized recreational cannabis in 2021 to 37.9% after, though the increase wasn't statistically significant, according to a study published in The American Journal of Forensic Medicine and Pathology. Pedestrian fatalities saw a sharper, statistically significant increase, but the study flags heavy multidrug detection, most often alcohol, that complicates any direct read on impairment.
🧳 People moves
Shelby Poole, founder of Betty Bloom and former lead of Trade Marketing and Experiential at ayrloom, announced she has joined NY Farm Co. as Head of Marketing. In the role, she'll consult on the company's growth and market presence in New York. She'll also continue building Betty Bloom, the experiential platform focused on community, culture, and connection.
📰 What we’re reading
Reports Of Increases In Problematic Cannabis Use Don’t Mean We Should Return To Prohibition (Op-Ed) | Marijuana Moment
