Cannabis industry gets ready for Trump Part II

TRUMP II
Cannabis industry gets ready for Trump Part 2

The cannabis industry is preparing itself for the second Trump Administration, and whether you think Trump will be good for the industry probably has more to do with how you voted in November (if you’re an American) instead of any real facts on the ground.

Remember, Trump’s first Administration was broadly regressive on cannabis policy, as we’ve written. And his nominee to lead the Justice Department, Pam Bondi, is no friend to cannabis reform.

We should also point out that while cannabis legalization is making inroads among Republicans, it’s far more popular among Democratic voters and more Blue States have regulated cannabis markets than red states. So the political will might not be there, given other priorities. 

But, but, but: There are some compelling signs that Trump 47 might diverge from Trump 45 on cannabis reform. 

He endorsed the failed Amendment 3 in Florida, which would have legalized cannabis in his adopted home state.

And he posted in support of the SAFER Banking Act, a narrow cannabis banking bill, as well as moving cannabis from the most restrictive Schedule I to the less restrictive Schedule III of the Controlled Substances Act though that process is now delayed.

Cannabis also fits neatly into the pro-growth agenda that some tech executives who’ve donated to Trump and now have his ear are pushing. It also factors into the “de-banking” conversations that are popular in right-wing media circles, which are allegations that the Biden Administration retaliated against industries that they view as political rivals, like crypto and firearms, by removing their access to the financial system. 

What they’re saying: Many executives in the industry are going on a full-court charm offensive for the new President.

Kim Rivers, the CEO of Florida-based Trulieve and a large financial backer of the Amendment 3 campaign, has posted heavily from inauguration events in DC. 

“Good morning from Inauguration Day in DC. @CharlesBachtell and I alongside our incredible teams and lobbyists have had great conversations over the last couple of days as we peacefully transition to a new administration under @realDonaldTrump,” she posted on X. 

The US Cannabis Council, which last week combined with the National Cannabis Roundtable to form a larger trade group, posted from DC: “We're excited to get to work for cannabis reform with a new President and Congress.”

Oh, DEA: Trump has not yet nominated a new head of the Drug Enforcement Administration, a crucial position to oversee the rescheduling process.

Yesterday, Biden’s pick, Anne Milgram, left the agency to be replaced on an interim basis by George Papadopoulos, a career DEA official. 

It very much matters who Trump nominates to take the job, and what their views on cannabis reform are. 

One potential pick, Jack Riley, called cannabis a “gateway drug,” — a now debunked theory that using cannabis causes people to use harder drugs — in an interview last year. 

Our take: There are pretty clear arguments for cannabis reform that Republicans could get behind. It’s jobs, states’ rights, small business, and personal freedom. So over the next four years, cannabis advocacy is going to take on a Red hue. 

The conversation will shift to be less about social equity and justice, and more about promoting business and American economic might — particularly as some Canadian cannabis producers look to export to foreign markets. 

Some left-leaning advocates may be kicking themselves that they didn’t compromise more under Biden, because the next version of reform, if it comes in the next four years, will be much more palatable for Trump’s style of politics than, say, Senator Elizabeth Warren’s. 

But despite Trump’s bravado, the American political system is built on compromise. And cannabis reform is one of the few areas where there is some measure of bipartisan consensus. 

While it’s certainly not low-hanging fruit, it’s something Trump could address early on in his Administration if he truly wants to be seen as a unifier. Time will tell. 

-JB

“It's time that we act,” Kentucky Minority Whip State Sen. David Yates, D-Louisville said in an interview. “It's time that we listen to our constituents, and we do what's right not just for the people, but also economically for Kentucky.” 

Yates introduced two bills that would decriminalize cannabis in the state and allow adults over the age of 21 to buy, sell, and grow cannabis. Kentucky legalized medical cannabis earlier this year. 

Watch our chat with The US Cannabis Roundtable’s Saphira Galoob and Edward Conklin on Cultivated Live last week to discuss the merger between the industry’s two largest trade groups — the National Cannabis Roundtable and the US Cannabis Council — and how they’re preparing to lobby President Trump on cannabis reform this year. 

Biden pardons 2,500 nonviolent drug offenders 🤝

Former President Joe Biden pardoned 2,500 nonviolent drug offenders on his way out of office, including nine constituents of the Last Prisoner Project, an organization that advocates for the release of cannabis prisoners. 

Justice Department says federal cannabis case should be paused 🤔

The Justice Department told a federal court last week that it should pause a lawsuit, filed by Panacea Plant Sciences, challenging the DEA’s cannabis rescheduling hearing, Marijuana Moment reports. 

Sen. Liz Warren asks RFK Jr about cannabis 👀

Sen. Liz Warren wrote a letter to Robert F. Kennedy Jr — the nominee to lead the Department of Health and Human Services — to reiterate his position on cannabis legalization, Marijuana Moment reports. Read the letter.

Philip Morris inks partnership with medical cannabis firm 🌿

Tobacco giant Philip Morris, the maker of Marlboro and Zyn, said it’s entering into a partnership with medical cannabis firm Avicanna via its Vectura Fertin Pharma subsidiary to research medical cannabis applications in Canada. Read more. 

Cookies brings cannabis drinks to ten states 🥤

Cannabis brand Cookies and Green Monke, a cannabis drink brand, are rolling out a line of hemp THC-infused drinks in 10 US states, including Alabama, Florida, and Georgia. The companies say the drinks will be available in over 5,000 stores at $16.99 per four-pack, in stores like Total Wine, Binny’s, and Circle K. Read more.

The Ontario Cannabis Store is looking for a senior communications advisor for a 9-month contract. Check out the job description here.

New York pulled in $80 million of cannabis tax revenue last year, according to a year-end report released by the state’s Office of Cannabis Management. Read more.

Cannabis and sleep 💤

Nearly 1 in 5 of US adults use cannabis to help them sleep, according to a new survey conducted by Harris Poll on behalf of Incredibles, a Green Thumb Industries-owned edibles brand. Check out the full results here.

Tiny and “micro” joints have apparently “exploded” in popularity in California, SF Gate reports. Read it.

Thoughts on the Terrible Pageant of Marijuana Rescheduling | Harris Sliwoski

Inside Cannabis’ Willy Wonka Flavor Factory | Forbes

Marijuana rescheduling runs into roadblock | The Hill

Excise tax, store markups crushing cannabis industry, producer says | CBC