Trump taps Matt Gaetz for Attorney General

TRUMP’S PICKS
Matt Gaetz might be the next Attorney General

Driving the news: All policy is personnel, as they say, and the cannabis industry is focused on who President Donald Trump is tapping to staff important posts for cannabis reform.

Trump picked Florida Rep. Matt Gaetz as Attorney General yesterday, which sent cannabis stock skyrocketing. 

What’s his record? This is a cannabis newsletter, so we’ll refrain from commenting on all the ways that Gaetz is historically unprepared to manage the entire Justice Department. But for the industry, the Gaetz pick is a positive. 

That’s doubly true in comparison to the Attorneys General in Trump’s first administration, which included staunch prohibitionists like Jeff Sessions — who rolled back federal protections for state-legal cannabis — and Bill Barr, who is working with Smart Approaches to Marijuana, an anti-legalization group, on fighting the ongoing process to move cannabis from the most restrictive Schedule I to Schedule III. 

Gaetz has been one of the most pro-cannabis Republicans on Capitol Hill. He was one of three Republicans to break with his party to vote for the Marijuana Opportunity and Reinvestment Act in 2022, which would have federally decriminalized cannabis.

He’s also long supported the SAFER Banking Act, a cannabis banking bill, and has advocated for fully removing cannabis from the federal list of Controlled Substances. 

But unlike Trump, Gaetz did not support Amendment 3 — the ballot measure to legalize cannabis in Florida that failed to clear the 60% threshold last week — though over concerns that a constitutional amendment would be the wrong way to pursue legalization in the Sunshine State. 

Gaetz has also sponsored the first medical marijuana bill in Florida’s legislature in 2014.

What they’re saying: “By tapping him to serve as the nation's top law enforcement officer, President-elect Trump is signaling his commitment to make good on his campaign promises around cannabis reform,” The US Cannabis Council, an industry trade group, said. 

“We’ve said from the outset that the cannabis community has good reason to be optimistic about a second Trump Admin. Today's AG announcement, along with other recent staffing moves, give us hope for the next phase of federal cannabis reform, including SAFE and rescheduling.” 

Why it matters: As Attorney General, Gaetz will oversee the Drug Enforcement Administration and on the ongoing rescheduling process. It’s clear that he won’t be a thorn in its side as some other potential Trump picks would be. 

He could also potentially direct the DEA to go further by fully removing cannabis from the federal list of Controlled Substances, but we don’t yet know if cannabis reform will be a political priority, given opposition within his own party.

And it’s also not clear if Gaetz will actually be able to get confirmed by the Senate, as he has previously been investigated for sex trafficking and many Republicans have concerns about his ethics and preparedness to lead the Justice Department. 

But, but, but: Senate Republicans voted for South Dakota Sen. John Thune, a more establishment-leaning Republican, to take over as Majority Leader.

Thune has advocated against the SAFER Banking Act and the rescheduling process. His home state has now defeated legalization twice. It’s going to be interesting watching a pro-cannabis attorney general, if confirmed, work with Thune and Senate Republicans. 

Like we’ve written previously, at least the next two years of cannabis reform are all up to the Republicans now. Let’s see what happens. 

-JB

“Hemp operators like myself are asking Congress for effective regulations,” Cornbread Hemp cofounder Jim Higdon told us on Cultivated Live. “We’ve been begging them for six years. Our trade association, the US Hemp Roundtable, has been asking Congress — it’s not like we’re out here acting like we belong in an unregulated market and the over-regulated cannabis market can go pound sand.

Watch the full discussion:

First shipment of cannabis to Nantucket 🛥️

The Green Lady became the first dispensary to ship cannabis via boat to Nantucket, the company said. Previously, dispensaries couldn't transport cannabis across the water from mainland Massachusetts to Nantucket or Martha's Vineyard, until they filed a lawsuit against the state's Cannabis Control Commission. Read more. 

California cannabis tax rate set to increase 📈

California’s excise cannabis tax rate is set to increase from 15% to 19% on July 1, but legal cannabis businesses say it could destroy the already ailing market. Read more. 

CBD increases your high 🌿

A new study found that CBD, long thought to reduce anxiety and paranoia from getting too high, does the opposite — it increases the effects of THC. Read it here. 

Cannabis earnings season continues: 

• Ayr Wellness reported a $17.4 million operating loss on $114.3 million of revenue for the third-quarter. The loss was up from $1.4 million the same quarter the year prior. Net loss attributable to the company was $50.6 million.

• iAnthus reported an $11.6 million net loss on $40.3 million of revenue. 

• Blum Holdings reported a $3.3 million net loss on $4.3 million of revenue — the loss down from a $23.8 million profit the same quarter a year prior. 

• Springbig reported a $0.6 million net loss on $6.4 million of revenue. The loss improved from $2.7 million the same quarter a year prior.

• Glasshouse Brands reported a $3.2 million net loss on $63.8 million of revenue. 

• Advanced Flower Capital reported $1.4 million of net income.

Female cannabis consumers are sensitive to price, according to the results of a new YouGov poll. They say that improving sleep would encourage them to try more cannabis products, according to the poll.

This rare health disorder is on the rise in cannabis users | National Geographic

Missouri’s $1.4 billion cannabis market outpaces states with older programs | Missouri Independent