Good morning.
We’re doing our best to bring you what you need to know from the DEA’s rescheduling hearings. More on that below.
Be sure to join us at 10 AM Eastern for a Cultivated Live conversation with Alison Gordon, the founder of RIPPED, a New York-based brand finding success with indoor-grown, ground flower. Streaming on LinkedIn » and YouTube »
Let’s get to it.
-JB, JR
Today’s newsletter is 1,112 words or about a 9-minute read.
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💡What’s the big deal?
OH, DEA
Rescheduling hearings kicked off — here’s what we know so far

The DEA hearings to consider reclassifying cannabis to Schedule III kicked off in Arlington, Virginia on Monday.
We weren’t able to be in the room, so we’re relying on second-hand information from those that were, to be fully transparent.
Our push to DEA Administrator Terrance Cole to open the hearings to the broader public has so far received no response. We, like other media outlets, will keep trying.
Here’s what happened: In the room were a mix of federal government officials from the FDA and DEA, suited-up cannabis industry execs lobbyists, and paralegals and junior attorneys from various law firms, as well as a number of cannabis-reform opposed groups like the well-funded Smart Approaches to Marijuana, which is leading the opposition effort.
DEA lawyer James J. Schwartz opened the hearing, saying that the federal government is a proponent of the change and that all controlled substances should be regulated based on the balance between their benefit and harm.
The first witness was Dr. Dominic Chiapperino, who leads the FDA’s Controlled Substance Staff from the agency’s Center for Drug Evaluation and Research.
Chiapperino was there to defend the federal government in its push to reschedule cannabis. He walked the court through the criteria the FDA used to underpin the HHS’s recommendation to reclassify cannabis.
First, Chiapperino discussed the eight-factor analysis underpinning the FDA’s recommendation, including the new, two-part Currently Accepted Medical Use (CAMU) test, which is how the agency arrived at the Schedule III conclusion.
For the test, there only needs to be one accepted medical use for cannabis to be removed from Schedule I. The FDA identified three:
Anorexia associated with a medical condition
Nausea and vomiting, such as that created by chemotherapy
Pain.
He provided evidence from state medical cannabis program data, peer-reviewed studies, and compared the safety and withdrawal profile of cannabis against cocaine and benzodiazepines. He also compared the safety profile of cannabis to other non-scheduled drugs, like alcohol and tobacco.
He was then cross-examined for seven hours.
What they’re saying: “WILDLY false arguments by this politicized government agency being presented,” Kevin Sabet, the CEO of Smart Approaches to Marijuana, said on X.
Why it matters: As the Marijuana Policy Project points out, the hearing will provide a record for any court challenge to whatever rule the ALJ judge decides.
Opponents will need to discredit the FDA’s test, as well as the abuse potential of cannabis to make their case. But since the majority of witnesses in the hearing are against cannabis reform, the onus is on the DEA and its chosen witnesses to make the case for rescheduling bullet-proof.
“For the cannabis community — advocates and industry alike — trusting the DEA to do the right thing is a hard sell,” the group said.
And more: The International Cannabis Bar Association joined the push to open the hearings to the public. They join us, Law360, The New York Times, Marijuana Moment, and Rep. Steve Cohen.
The hearing continues today. Dr. Corey Burchman will testify to the effectiveness of cannabis for pain management.
-JB
🗨️ Quotable
“I am not a fan of and will never be a fan of marijuana, but I think I’m not on the winning side of that issue long term, unless the severe ill effects that are out there persuade people to have it come back the other way,” Rep. Chuck Fleischmann (R-TN), told Marijuana Moment in a story about how Congress doesn’t plan to block rescheduling.
⏪ In case you missed it
Yesterday, Jay sat down with Ryan Crandall, Chief Commercial Officer at MariMed to talk about their approach to their core brands and the experience the Massachusetts-based MSO brings to emerging markets. The conversation was presented in partnership with the Canadian Securities Exchange. $MRMD.CSE ( ▼ 9.52% )
⏩ Quick hits
It’s official: Cannabis will be legal in Virginia 🌿
Virginia lawmakers passed a budget that includes rules to legalize commercial cannabis sales in the state, over five years after the state first legalized it. The compromise language was placed into the budget after Gov. Abigail Spanberger vetoed legislation that would’ve legalized sales. The new language directs sales to begin on July 1, 2027 — and it also happens to be the same state where the DEA hearings are being held. More »
Canada’s framework for intoxicating cannabinoids 🌿
Health Canada updated guidance telling licensed processors to count delta-8, HHC, CBN, and other intoxicating cannabinoids toward existing THC limits. That means a 10mg edible cap applies to the combined total, not just delta-9. The US has no federal equivalent.
📊 Insights
LIT ALERTS
New York's cannabis divide: How Upstate and Downstate play by different rules
Ruby Farms conquered NYC's pre-roll game with convenience and clean aesthetics. But venture upstate, and Jetpacks' concentrate-infused joints reign supreme.
Lit Alerts just released a game-changing macro analysis revealing the divergent playbooks winning in Downstate versus Upstate New York.
The insight? Agricultural authenticity and regional farm loyalty dominate upstate, while downstate consumers chase lifestyle branding. Yet one trend unites both: value-tier brands like Jaunty, Find., and Off Hours are building the most resilient market footprints statewide.
If you're scaling your operation or launching new products across New York, these geographic boundaries aren't obstacles—they're your roadmap to market dominance.
🤝 Deals, launches, partnerships
TerrAscend filed a preliminary proxy seeking shareholder approval for a reverse split to meet U.S. exchange uplisting requirements. Like Trulieve and Glass House, TerrAscend is looking to “uplist” to the NYSE. $TSNDF ( ▼ 3.22% )
Tilray announced that they have acquired HelloMD, a medical cannabis patient platform. $TLRY ( ▼ 0.65% )
⚖️ Lawsuits
California DCC hit with $500M lawsuit over burner distributors
Kolaboration Ventures sued the California DCC in Monterey County last week, alleging the agency failed to implement a legally required flagging system for illicit diversion schemes while collecting more than $4M in license fees from Kolaboration alone. The suit names the illicit workaround explicitly: "burner distributors." Read more.
📰 What we’re reading



