History Chimes – by Todd Harrison

Daily summary

It was a perfect day for the oral arguments the repeal of Prohibition 2.0 in Boston when the first alcohol ban was lifted exactly 91 years ago today.

Presiding over the U.S. Court of Appeals for the 1st Circuit was Judge Barron, who wrote the opinion for the NE Patients Grp case and is already familiar with the CSA and Rohrabacher-Farr (Obama appointee), Judge Montecalvo (Biden), a former public defender, and Judge Rikelman (Biden), a former reproductive rights litigator.

The timing for a decision is “probably January/February,” according to those close to the ruling, but hopefully as soon as possible since this was widely seen as a stepping stone to the Supreme Court. 🙏 Boies Schiller Flexner LLP, Jason G. Wild, E-Pax at Poseidon, the leadership at Verano brands And anyone else who is able to support this effort be on the right side of history.

Imagine a level playing field

The U.S. cannabis industry is experiencing rapid growth, with retail sales expected to exceed $32 billion in 2024 and wholesale sales reaching nearly $12 billion – and we can’t imagine how high that number could be without it heady hemp bogarting sales.

A decade of expansion has transformed the sector from a single-state market into a nationwide industry that supports 500,000 jobs and over 25,000 businesses in 41 states with some form of cannabis legalization.

As more states implement regulatory frameworks, the market is expected to grow to $55 billion by 2030, driven by new licenses, retail expansion and evolving policy environments. In October 2024, retail sales reached an annual sales rate of $33 billion, up 7% year over year.

Hat and cattle

Texas Governor Dan Patrick announced today that a new bill will be introduced in the state legislature that would ban the sale of “all forms of consumable tetrahydrocannabinol (THC)” anywhere in the state.

Patrick said retailers in Texas were selling “life-threatening, unregulated forms of THC to the public” and argued that some were aimed at children.

In 2019, Texas legalized the sale and consumption of hemp with a maximum content of 0.3% THC, bringing the state into compliance with a federal law (while cannabis remains illegal). The legislation led to a large legal hemp industry in Texas, with the product sold in various forms including vapes, gummies, drinks and creams.

Brown paper bag

New York’s completely backwards rollout of the legalized canna market is facing another potential setback after a lawsuit was filed challenging the constitutionality of the $20 million fee medical cannabis operators were charged to enter the market retail market demand.

The lawsuit alleges that the “punitive settlement” required MMJ companies to make four payments of $5 million as a condition of entering the retail market.

Stocks & stuff

It was a whipping day in Cannland with initial strength, a lull in the midday and some volatility in the afternoon after traders read about it Meme-type things that they shouldn’t read into it.

The US cannabis ETF MSOS ended the session up one percent but was largely unfazed.

Below, we’ll survey the landscape, talk the news, map the DEA ALJ timeline, listen to the Canna case, and identify an all-time low point in sentiment — and what it’ll take to change it.

All this and more, just scroll down.

Note: I will be offline on December 20th – New Year’s Day. Healthy and safe holidays to you and your loved ones.

SPY 0.00% ↑ QQQ 0.00% ↑ IWM 0.00% ↑ MSOS 0.00% ↑ ETF face value: USD 92 million

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