Happy Friday.
You’ve made it to the end of the week! There will be no This Week in Cannabis LIVE today.
Instead, listen to this awesome episode from our friends at The Dime podcast, talking about building a cannabis brand in New York’s unforgiving cannabis market with Jaunty CEO Nic Guarino.
-JB, JR, ZH
Today’s newsletter is 880 words or about a 6.5-minute read.
💡 What’s the big deal?
INTERSTATE
New Jersey wants to join the interstate commerce club
Driving the news: New Jersey Senate President Nicholas Scutari filed a bill that would allow the state’s governor to create agreements with other states for interstate cannabis commerce.
The bill would only go into effect if the federal government permits.
The big picture: Aside from tax benefits, if the federal government were to actually follow through on cannabis rescheduling, it’s possible that state supply chains were dramatically reshuffled.
Interstate commerce has the potential to dramatically subvert state markets. It may potentially undercut cultivation operations in smaller states, particularly those indoors in the north where colder climates require higher energy costs.
Recently, Verano Holdings and Massachusetts-based Canna Provisions challenged federal prohibition of interstate cannabis commerce in a lawsuit that lost at the federal and circuit level before being rejected by the U.S. Supreme Court. So a court solution is likely out of reach.
Nevertheless, an increasing number of states are positioning themselves in the event that trade becomes legally viable.
What’s in the bill: In New Jersey’s proposal, interstate commerce would respect rules involving travel through other states that may not legally allow weed.
Operators from other states would have to obtain New Jersey licenses in order to do business within the Garden State.
In order to take effect, the law would require federal action to either outright legalize interstate commerce, defund efforts to enforce restrictions on interstate activity, federal memorandum limiting legal action, or a written opinion from the U.S. Attorney General allowing such activity.
Some states would dominate: Oversupplied state markets, such as those on the West Coast, Michigan and Oklahoma would benefit from being able to sell products much more widely.
New Jersey, which consistently has some of the highest retail prices in the country, would benefit from the other end of the supply chain if interstate commerce were allowed.
California passed a law in 2022 that allows the governor to enter into agreements with governors of other states to facilitate interstate commerce deals involving cannabis. Oregon passed a similar law three years earlier that broadly allows operators in the state to deal with businesses in other states. Washington passed its own version of that law in 2023.
In all three cases, the laws were contingent on changes at the federal level, such as rescheduling.
-ZH
📣 Quotable
"This lawsuit does not threaten public safety. It does not threaten compliance. And it does not threaten track-and-trace. It challenges a system that forces license holders — especially small businesses — to subsidize a private vendor’s economic shortfall through per-unit fees, uncompensated labor, and coerced participation," wrote Veterans Holdings CEO Jason Ambrosino in a Linkedin post on Jan. 13, the day after New York retailers were required to start using Metrc's tracking system.
Veterans Holdings is currently suing the state over its switch from BioTrack to Metrc.
✍️ 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.
On Monday, 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
Two Republicans, Sen. Ted Budd of North Carolina and James Lankford of Oklahoma are trying to block the DOJ from moving forward with President Trump’s push to reclassify marijuana by filing an amendment to the FY2026 Justice Department funding bill that would prohibit any federal funds from being used to transfer cannabis out of Schedule I.
The New York Office of Cannabis Management is cracking down on billboards, reaffirming that billboard advertising is banned and giving licensees until February 26, 2026 to remove any existing signage or face enforcement.
📺 In case you missed it
Check out our webinar: Banking Implications of Cannabis Rescheduling: What’s Next?
This webinar broke down what rescheduling actually means for cannabis banking, financial services, compliance, and operator access to capital.
Check out the full recording 👇
🚀 Deals, launches, partnerships
Despite state and federal efforts to limit hemp-derived THC, Circle K launched a partnership with THC beverage brand Varin to offer a line of THC beverages in Texas shops.
Kentucky’s second medical dispensary, Speakeasy, opened in Lexington on Jan. 15. The state's first dispensary opened in early December, but had to temporarily shut down after it sold out of product. They expect to re-open later this month.
📰 What we’re reading