Happy Monday and welcome to June!
In this one, we’ve got a look at Robinhood adding more US cannabis stocks to the platform, and what that means for the months ahead.
So grab a cup of coffee and start your week off right with us.
-JB, JR
Today’s newsletter is 919 words or about a 7.5-minute read for your Friday morning.
💡 What’s the big deal?
STOCKS
Robinhood opens the door to US cannabis stocks
What happened: Hawk-eyed social media users noticed that Trulieve, Curaleaf, and Green Thumb Industries — three of the largest U.S. cannabis firms by revenue — were added to Robinhood's platform in read-only mode this week.
A quick scroll of the app found this to be true, and users could begin trading the names on Friday.
Why it matters: U.S. retail investors have largely been locked out of investing directly in these companies.
That's because non-medical cannabis remains Schedule I at the federal level, so major domestic exchanges like the Nasdaq and NYSE won't list companies that cultivate or sell the drug to adult consumers, even though nearly half of U.S. states allow sales.
If the DEA's June 29 hearing results in broader rescheduling, expect Green Thumb, Trulieve, and Curaleaf to benefit immensely.
Their cost of capital will go down, they'll push to move listings from OTC to more liquid exchanges, and 280E — the pesky tax rule that prevents them from taking normal deductions — goes away, immediately increasing profitability.
What’s next: Emerging industries like cannabis or crypto tend to move on euphoria and FOMO more than underlying fundamentals. This isn't a Benjamin Graham trade.
Educate yourselves and invest wisely, friends.
-JB
📣 Quotable
“This funding recognizes both the importance of a strong seed-to-sale tracking system and the financial strain implementation has placed on licensed cannabis businesses across New York,” a group of New York cannabis industry trade groups said about the state’s budget including funding to help operators comply with track-and-trace costs.
“Our groups worked hard to ensure state leaders understood that compliance costs fall especially hard on small and independent operators.”
⏩ Quick hits
Minnesota passes sweeping cannabis overhaul 🌿
Gov. Tim Walz signed a package that merges Minnesota's medical and recreational supply chains, creates a new macrobusiness license replacing the medical combination license held by Green Thumb Industries and Vireo Health, and removes barriers preventing hemp businesses from holding cannabis licenses simultaneously. The bill also legalizes large-format hemp beverages — up to 17 servings per container — ahead of the federal ban taking effect in November.
Tennessee finalizes THCA ban, effective July 1 🚫
The state's Alcoholic Beverage Commission finalized rules banning the sale of THCA products starting July 1, bringing the state in line with the looming federal hemp ban set to go into effect in November. Industry experts estimate THCA accounts for 75% of hemp sales, making the ban effectively a death blow to the state's hemp market.
Massachusetts' new Cannabis Control Commission holds first meeting 🏛️
The overhauled CCC — now three commissioners instead of five, all appointed by the governor — convened for the first time Thursday under new chair Chris Harding. The meeting was largely procedural; full implementation of the new law's regulatory changes expected to roll out through June and beyond.
Illinois lawmakers weigh sweeping cannabis overhaul ⚖️
House Bill 5784 would drop mandatory (and expensive) third-party security contractors, expand possession limits, and create pathways for hemp businesses to enter the regulated market. The bill's sponsor, Rep. Will Guzzardi, said the goal is to ease costs that have hit smaller operators and social equity licensees hardest.
Virginia lawmakers weigh using budget to force Spanberger's hand on cannabis 🤔
After Gov. Abigail Spanberger vetoed recreational cannabis sales legislation last week, top lawmakers are exploring attaching it to the state budget bill due by July 1, potentially forcing her to sign it to avoid a government shutdown. Senate Majority Leader Scott Surovell said the market is "not totally dead yet for this year." Spanberger called the tactic "an abuse of the process."
💭 Our thought bubble
A New York Post story about parents complaining about cannabis ads during a Mets game is classic right-wing hysteria. The article, though cleverly written, makes no mention that alcohol is freely available for purchase at Citi Field.
Cannabis still carries stigma. That’s apparent in the regulations that treat it like plutonium, compared to alcohol. If Budweiser can advertise at the Super Bowl, cannabis should be able to as well. It’s probably safer.
🚀 Deals, launches, partnerships
New York's ayrloom becomes Gov Ball's first cannabis partner
New York cannabis brand ayrloom will be the music festival Governors Ball's first-ever official cannabis partner, with a low-dose THC beverage activation on the grounds June 5-7. Ayrloom, owned by Beak & Skiff apple orchard and cidery, is consistently one of the top-performing brands on our Lit Alerts New York Brand Power Rankings.
And more:
Arizona-based Mint Cannabis sold its unopened Belmont, Massachusetts retail permit to a group of local investors for $1 million, what town officials called "on the low side" for a valid permit in a state with $1.65 billion in annual recreational sales
⏪ In case you missed it
Friday’s This Week in Cannabis Live was a good one. The Cultivated + Cannabis Musings + High Spirits team broke down Jeremy’s scoop on New York’s budget, Curaleaf’s 3-for-1 stock split, and a federal judge dismissing SAM’s lawsuit.
📰 What we’re reading
The feds have embraced medical marijuana. Now what? | State Line