Good morning and happy Monday.
Tune in at 3PM Eastern today for our webinar in partnership with Shield Compliance: Banking implications of cannabis rescheduling: What's next?
Hear from Shield Compliance CEO Tony Repanich, Blank Rome partner Scott Moskol, and Dutchie’s Bryan Barash on what’s next for cannabis banking.
As a programming note, this will be the last edition of Cultivated while we take a much-needed break to recharge and plan for 2026.
We’ll be back in your inboxes in January.
-JB, JR, ZH
💡What’s the big deal?
SII
Why Trump should legalize it 🌿
In perhaps the biggest shift in federal drug policy since the Nixon era, President Donald Trump signed an executive order Thursday that would downgrade cannabis from the most restrictive category of drugs.
While the reclassification from Schedule I to Schedule III of the Controlled Substances Act is a good start — and allows for more research — it stops well short of legalizing cannabis for adults. Trump should take the political win — and then go for the whole enchilada and push Congress to decriminalize cannabis and allow states to set their own rules.
“I have friends that are really, really sick … and they realize that this is something that makes them feel better, without all of the side effects,” he told reporters in an Oval Office signing ceremony.
Trump is heading into a contentious midterm season, if the results of November’s elections are any indication. His approval rating is underwater. Just 36% of Americans support how he’s handled the economy so far. His support among 18-to-29-year-olds, the demographic that helped deliver him his second stint in the White House, is free-falling per recent polls as unemployment numbers continue to rise and real wage growth slows.
But, as Peter Tosh sings, legalizing it could help him flip his popularity around — or at least stanch the bleeding — while delivering clear economic wins. It would be a smart move both for his political future and for the country.
This is adapted from Jeremy’s MSNOW column: Trump’s order on cannabis goes only so far. Here’s why he should legalize it.
🥊 Quick hits
Sen. Moreno says rescheduling could open the door to SAFER 🙏
Bernie Moreno (R-OH) said he is hopeful that Trump's rescheduling move could spur fellow GOP Senators to get behind bank reforms, such as SAFER Banking, that could increase access for state-legal cannabis operators to services from financial institutions. Moreno said recent efforts at reform are stalled in the legislature, but he remains hopeful following the president’s actions. Marijuana Moment has more.
NY hit with lawsuit over track-and-trace rollout 📊
A New York cannabis company has sued the state over the rollout of Metrc, the track-and-trace provider. One grower told the Albany Times-Union that the required tags he must purchase to comply with the system will increase his costs 4,500%. Metrc was supposed to go into effect last week.
ICE makes arrests in Oregon in cannabis farm raid 🧊
Cannabis-related raids across Rogue Valley, Oregon last summer resulted in at least 17 being detained by Immigration and Customs Enforcement, according to reports from the Rogue Valley Times. These detainments indicate that early-July's raid on Glass House Brands' ($GLASF) cultivation sites in California was not an isolated incident.
Smart Approaches to Marijuana lawyers up to fight rescheduling 👨⚖️
Anti-legalization group Smart Approaches to Marijuana says it has hired former Attorney General William Barr to challenge President Trump’s executive order directing federal agencies to reclassify cannabis.
👀 In case you missed it
On Friday, Jay and Jeremy were joined by AnnaRae Grabstein and Ben Larson from High Spirits and Marc Hauser from Cannabis Musings.
In case you missed it 👇
🤝 Deals, launches, and partnerships
Curaleaf pulls out of VA deal 🚫
Curaleaf ($CURLF) announced on Dec. 19 that it would pull out of the proposed deal to acquire The Cannabist's ($CBSTF) cultivation and retail operators in Virginia. A competing bid came in, $130 million plus assumption of a $30 million lease, which exceeded the amount Curaleaf was willing to pay. Curaleaf said that it is entitled to a $3.3 million break free for the cancellation.
🧪 Science and research
Mass study links legalization and cannabis use disorder ⚠️
A study out of Massachusetts General Hospital found a potential link between the commercialization of cannabis and an uptick in teenage use and reported psychiatric disorders. The study, which analyzed health records from over 7,000 cases from psychiatric emergency services found an increase in THC use among all age groups. At the same time, the only group where there was also an increase in cannabis-related disorders was among the group of 12-17 year-olds.
🎒 What we’re reading
Trump Goes for the Stoner Vote | Wall Street Journal