Good morning.
It’s a short work week ahead of the Fourth of July and Canada Day but it’s a consequential one for federal cannabis policy.
We won’t be at the hearings in person, but we’re working to advocate for public access to this historic week for federal cannabis reform.
If that wasn’t enough, tune in at 10AM for Jay’s interview with MariMed’s Ryan Crandall, in partnership with the Canadian Securities Exchange. Streaming on LinkedIn » and YouTube »
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 1,111 words or about a 9-minute read.
💡 What’s the big deal?
OH, DEA
Rescheduling hearings kick off today 👂
Driving the news: The DEA hearings on whether to reclassify adult-use cannabis to Schedule III kick off today at 9 AM.
It’s one of the most consequential weeks for federal drug policy in decades.
What happened: The hearings are set to be closed, meaning no livestream and only press who make it down to Arlington to physically sit in the courtroom can see the proceedings.
The selected witnesses are predominantly anti-cannabis reform, and include groups like Smart Approaches to Marijuana and other individuals who are stridently anti-cannabis. We at Cultivated believe the public should be able to view the hearings, especially in light of the closed-room testimony set to be presented.
That’s why we’re asking DEA Administrator Terrance Cole to direct the judge to open a livestream for the hearing. We believe both the independent media and the public has a right to know what's happening in one of the most consequential hearings for drug policy reform in decades.
We’re working with David Holland of Holland Schriever. We’re a party to the letter with Ashley Southall of The New York Times, and our effort builds on a push started by Tom Angell of Marijuana Moment. The parent company of Law360 has joined in the effort with a letter of its own. Rep. Steve Cohen (D-TN) sent a letter to Cole requesting that the hearings be made public in “real-time.”
Dr. Corey Burchman, who has written for Cultivated, will be among those testifying for rescheduling cannabis, which we are heartened to see.
What they’re saying: “I am writing to you on behalf of Cultivated Media as well as Ashley Southall, a Cannabis Reporter affiliated with the New York Times, who too has raised concerns about transparency and public access during this critical proceeding,” the letter reads.
Why it matters: The DOJ reclassified medical cannabis earlier this year. If the DEA extends that classification to adult-use cannabis, the industry will change immensely.
While Schedule III is from legalization, it could immediately help cannabis firms list on domestic exchanges, gain access to capital, and help rekindle outside investor interest in the sector. It may also catalyze other states to push to open cannabis markets, and send a signal to the UN and the international community that the U.S. is changing its course on cannabis and other states should follow.
The real hope is that rescheduling is just a step on the path to full legalization, though this might be the furthest we get under a Republican president. But it’s also theoretically possible the result of the hearings is that medical cannabis remains Schedule III, while recreational cannabis remains Schedule I though legal in states.
That’s obviously not tenable long-term, but either way we’ll know by July 15 when the hearings conclude. Either way, we’re trying our best to help the public gain access to this critical information.
-JB
Editor’s note: We wrote this newsletter at 3:30 PM Sunday and have not yet heard back from the DEA.
📣 Quotable
“It’s just opening up a whole new world for patients to receive care,” Dr. Tiffani Forbes, a cannabis doctor in Georgia, said of the new rules expanding medical cannabis access for those in the state with chronic pain or PTSD, especially veterans. Read more »
⏩ Quick hits
Cannabis reinvestment fund gets $15M boost 💰
New York approved $15 million in grants through its Community Grants Reinvestment Fund, which channels 40% of cannabis tax revenue to communities disproportionately harmed by past drug enforcement. Individual awards range from $50,000 to $200,000, targeting youth-focused programs in mental health, workforce development, and housing.
🚀 Deals, launches, partnerships
NY launches cannabis care center 🏥
New York's Office of Cannabis Management launched the Center of Excellence for Cannabis Care and Health Equity, a first-in-the-nation initiative to train healthcare providers on cannabis and improve patient-provider conversations about use.
🧳 People moves
Longtime Marijuana Policy Project state policy director Karen O’Keefe is leaving the organization after over twenty years engaged on cannabis policy. We wish her all the best at her new role!
🧑⚖️ Lawsuits
Hemp-derived HHC firms fight DEA reclassification in court ⚖️
Two hemp companies filed responses in the Ninth and Fourth Circuits challenging the DEA's May rule classifying hemp-derived HHC as a Schedule I controlled substance, arguing it conflicts with the 2018 Farm Bill's explicit removal of hemp derivatives from the Controlled Substances Act. The filings also request an emergency stay, citing cancelled contracts, lost banking relationships, and potential inventory destruction.
🔬Science & research
Teen cannabis use doubled psychosis risk, study finds 🧠
A major new study of 463,000 teens found that past-year cannabis use roughly doubled the risk of developing psychotic or bipolar disorders by young adulthood. Cannabis use preceded psychiatric diagnoses by nearly two years on average.
Cannabis linked to heart attack risk through multiple pathways, review finds ❤️
A narrative review published in The American Journal of Medicine found that cannabis use may trigger acute myocardial infarction (heart attacks) through several converging mechanisms, including increased heart rate and blood pressure, coronary vasospasm, and impaired oxygen delivery from smoke inhalation. Daily use was independently associated with a 25% higher heart attack risk in large population-based analyses.
⏪ In case you missed it
Friday’s This Week in Cannabis Live was a good one. We talked about Glass House moving to the NYSE, the DEA hearing, and last week’s winners and losers.
📊 Stat of the day
Forty-four percent of Indianans live within 50 miles of a legal dispensary and 96% live within 100 miles, yet cannabis is not legal in the Hoosier State. A new analysis finds that even with the state’s restrictive policies, cannabis is widely available for residents.
📰 What we’re reading
Using cannabis for sleep isn't harmless – a neurologist explains how it can trap people in a cycle of dependency | The Philly Voice
Could Massachusetts be the first state to reverse marijuana legalization? | The Boston Globe