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In this week’s edition:
President Trump’s Nominee for Attorney General Refuses to Disclose Position on Cannabis Rescheduling; Acting Head of DEA Claims Cannabis Is a “Gateway Drug”; Nominee to Lead DHHS Offers Deference to DEA
Executive Order Signed Designating Drug Cartels as “Foreign Terrorist Organizations”
United States Border Agencies Argue for Dismissal of Lawsuit Challenging Seizure of State-Legal Products
Survey Shows 96 Percent of Cannabis Consumers Believe DEA Is Biased Against Rescheduling
Report Forecasts Industrial Hemp Market to 2029
FDA Proposes Adding Hemp-Derived Cannabinoids to Federal Forms Used to Report Adverse Health Events
Dentons Speaks
Dentons Partner Eric Berlin and Senior Managing Associate Jacob Raver will be attending CannaDataCon in Miami Beach. Eric will be speaking on panel topic “THC Drink Regulations: Who’s at the Helm?” on Friday, February 7th.
Federal
President Trump’s Nominee for Attorney General, Pam Bondi, Refuses to Give Her Position on Cannabis Rescheduling While RFK Jr. Says He Will Defer to DEA – Former Florida Attorney General Pam Bondi, Trump’s nominee for U.S. Attorney General, has repeatedly declined to specify her stance on cannabis policy issues, responding to all related questions from senators with the same line about giving “careful consideration after consulting with appropriate Department officials.” She also avoided specifying her stance on the federal enforcement of cannabis laws or how she would approach state regulations on the substance; key questions thus remain about how Bondi would handle both the rescheduling process and federal enforcement priorities. Despite Trump’s recent support for cannabis rescheduling and ending arrests for personal use, Bondi’s past record as Florida Attorney General shows opposition to medical cannabis legalization, including defending a ban on smoking medical cannabis in 2018, and has raised concerns among advocates about her approach at the federal level. Robert F. Kennedy Jr., President Trump’s nominee to lead the Department of Health and Human Services says he will defer to the Drug Enforcement Administration on rescheduling if he is confirmed.
Derek Maltz, the Acting Head of the Drug Enforcement Administration, Claimed Cannabis Is a “Gateway Drug” – Derek Maltz, the newly announced acting DEA administrator, has expressed controversial prohibitionist views on cannabis, including promoting the gateway drug theory and claiming that legal state markets won’t reduce cartel activity due to high taxes. Despite studies showing that regulated cannabis markets help reduce illegal trafficking (as acknowledged in a 2020 DEA report), Maltz has made sensational claims linking cannabis use to school shootings and stating that modern cannabis causes psychosis and schizophrenia. Maltz has been particularly critical of the current cannabis rescheduling effort, suggesting that the Department of Justice “hijacked“ the process from DEA when it advanced the recommendation to move cannabis from Schedule I to Schedule III.
President Trump Signed an Executive Order Designating Drug Cartels as “Foreign Terrorist Organizations,” Suggests U.S. Special Forces May Go to Mexico To Attack Them – On January 20, 2025, his first day in office, President Donald Trump signed an executive order designating “cartels and other organizations” as “foreign terrorist organizations and specially designated global terrorists.” The Executive Order states international cartels constitute a “national security threat” beyond that posed by traditional organized crime which has not only “destabilized countries with significant importance for” the United States’ national interests—the executive order specifically identifies Mexico—but has “flooded the United States with deadly drugs, violent criminals, and vicious gangs.” Shortly after signing the Executive Order, President Trump was asked if he would send U.S. Special Forces to Mexico to attack the cartels; President Trump responded it “could happen. Stranger things have happened.”
United States Border Agencies Are Urging a Federal Court To Dismiss a New Mexico Cannabis Business’s Lawsuit Challenging the Seizure of State-Legal Products Because “Federal Law Prevails” – The Department of Homeland Security and Customs and Border Protection are seeking dismissal of a lawsuit filed by New Mexico cannabis businesses over the seizure of state-legal products at interior checkpoints, arguing that federal law supersedes state law regarding cannabis prohibition. Eight cannabis businesses filed the lawsuit in October, claiming that CBP’s actions violate Fifth Amendment protections against unlawful searches and seizures, but the federal agencies maintain they have statutory authority to seize cannabis products regardless of state legality or DOJ policies. The agencies argue that the congressional rider protecting medical cannabis states only applies to the DOJ, not DHS or CBP, and that past federal “hands-off” approaches to state cannabis reform are not legally binding on their enforcement activities.
Biden Grants Clemency to Nearly 2,500 Nonviolent Drug Offenders – In one of his final acts before leaving office, President Joe Biden has commuted the sentences of nearly 2,500 individuals incarcerated for nonviolent drug offenses, including cannabis-related crimes, bringing his total clemency grants to the highest of any president in history. Biden emphasized that this clemency action addresses outdated sentencing disparities and enhancements, providing relief to those affected by discredited distinctions between crack and powder cocaine.
Survey Indicates That 96 Percent of Cannabis Consumers Believe DEA Is Biased Against Rescheduling Cannabis – A new poll from NuggMD found that almost all cannabis consumers do not trust the DEA to serve as an “unbiased proponent” of rescheduling cannabis to Schedule III of the Controlled Substances Act. The polling comes as administrative hearings on the rescheduling proposal have been delayed by at least three months due to appeals from pro-reform witnesses regarding alleged improper communications between DEA and certain rescheduling opponents.
State
CO – The City of Colorado Springs has proposed a ballot measure which could reverse adult-use cannabis sales in the City. The measure seeks to repeal the ordinance that legalized recreational cannabis sales, which was approved by voters in the November 2024 election. It has faced significant opposition from marijuana industry members and supporters, who argue that the city is attempting to undermine the election results and the will of the voters.
ID – The Idaho House of Representatives voted largely along party lines Tuesday to pass a new bill that would create a mandatory minimum fine of $300 for anyone convicted of cannabis possession in addition to current penalties already in place. A number of law enforcement organizations and state Republicans supported House Bill 7, which will need to pass the Idaho Senate in order to become law.
IN – Bipartisan Indiana lawmakers are looking to neighboring states for guidance on how to legalize cannabis with effective regulations and taxes. Every state surrounding Indiana has legalized cannabis in some way. The push to legalization in the state is accepted by both progressive and conservative lawmakers.
KY – Kentucky’s Senate minority whip, David Yates (D – Louisville) filed two bills to legalize cannabis. Senate Bill 33 would decriminalize possessing a small amount of cannabis and expunge convictions of low-level possession charges, such as possessing, cultivating, or trafficking up to eight ounces or five cannabis plants. Senate Bill 36 would allow purchasers of 21 years and older the right to buy, sell, or grow a small amount of cannabis without facing charges. The bills do not arrive without pushback. Kentucky’s Senate majority floor leader said it “is unlikely that there is a significant appetite within the Senate Republican Caucus to support legislation” to legalize or decriminalize cannabis.
MA – The Massachusetts Cannabis Control Commission has introduced a guidance document regarding Community Impact Fees, which are part of the Host Community Agreement (HCA) process between cannabis licensees and local municipalities. The guidance is one of a handful issued this past year to assist licensees and municipalities in working through the new HCA regulatory requirements imposed by the Commission following state legislative reforms in 2022. Regardless, the new HCA requirements remain a source of contention between certain licensees and municipalities.
MO – The Missouri Division of Cannabis Regulation is proposing new rules aimed at addressing what they describe as “predatory” practices in the cannabis microbusiness license. One consultant appeared on 329 social-equity license applications in 2024 as the person who handles all communications with state regulators. An Arizona-based cannabis investor is associated with at least a dozen contacts that were listed on approximately 600 applications in 2024. The Division of Cannabis Regulation stated these actions were “predatory” and proposed new rules around who can be listed as a designated contact on the applications.
NE – Nebraska lawmakers filed several bills to amend rules for the voter-approved medical cannabis program. All three bills would allow Nebraskans to apply for a registry card, identifying them as a qualified patient for the medical cannabis program. The individuals must first receive a written recommendation for medical cannabis from a registered health care practitioner.
OK – An Oklahoma state lawmaker has proposed a bill to make it illegal for women to use medical cannabis during pregnancy. Recent court decisions in Oklahoma have protected women with medical cannabis licenses from prosecution, but the new bill aims to change this by making it easier for prosecutors to file child neglect charges against expectant mothers who use cannabis with doctor‑approved medical licenses. Advocacy groups argue that criminalizing medical cannabis use during pregnancy could deter women from seeking prenatal care and is discriminatory.
TN – A Tennessee senator announced plans to re-introduce medical cannabis legislation. The bill would legalize medical cannabis use for patients with qualifying conditions, including cancer, epilepsy, inflammatory bowel disease, opioid addiction, severe psoriasis and other ailments. If passed, Tennessee would join forty other states that have medical cannabis programs.
VA – A Virginia House subcommittee has advanced a bill to legalize retail cannabis sales. The bill, HB 2485, passed with a 5-1 vote and now moves to the full General Laws Committee. Governor Glenn Youngkin is expected to veto the bill, as he did with a similar proposal last year. If passed, adults could purchase up to 2.5 ounces of cannabis from state-licensed retailers starting May 1, 2026. Sales would be taxed at up to 11.625%, with additional local taxes possible. The Virginia Cannabis Control Authority would oversee licensing and regulation.
Hemp
FDA – The FDA is proposing to add hemp-derived cannabinoids, like CBD, as selectable options on federal forms used to report adverse health events. The change would revise the “Product Type” field in FDA safety reporting documents, including forms 3500 and 3500A, to include “Cannabinoid Hemp Products.” It also clarifies that form 3500B should be used for mandatory industry reporting related to these products. The FDA is accepting public comment regarding its proposal until March 18. In explaining its years-long focus on hemp versus cannabis (including with regard to agency warning letters), an FDA spokesman noted that hemp was a higher priority because it is more widely available and not regulated in many states.
Congressional Researchers Outline ‘Diverging’ Priorities For Federal Hemp Laws – A new Congressional Research Service report highlights the differing priorities among legislators, stakeholders, and advocates regarding hemp-related proposals. The report emphasizes the economic conditions and policy considerations for the hemp industry as lawmakers prepare to revisit the Farm Bill. One revision could be modifying the definition of hemp, requiring crops to be tested for “total THC” content (including cannabinoids such as delta-8 and THC and THC-A), which would significantly restrict the varieties of plants that could be cultivated and impact the availability of certain products in the market. Meanwhile, hemp advocates seek to expand USDA farm program support for hemp, including research, processing capacity, and crop insurance.
Industrial Hemp Market Global Forecast to 2029 – The recently released report covers drivers, restraints, challenges, and opportunities, influencing the growth of industrial hemp market. The global market for industrial hemp is estimated to be valued at $11.03 billion in 2024 and is projected to reach $30.24 billion by 2029, at a compound annual growth rate of 22.4% during the forecast period. The report includes profiles of Curaleaf, Green Thumb Industries, Canopy Growth, Aurora Cannabis, Ecofibre, HempFlax, Fresh Hemp Foods, GenCanna, Konoplex and other industry leaders.
MO – The Missouri Senate Families, Seniors and Health Committee recently convened a hearing on a proposed bill (SB 54) by Sen. Nick Schroer (R) that would push all hemp intoxicating product sales into the state-authorized cannabis market. Opponents, including the Missouri Hemp Trade Association, have noted that such changes would devastate local businesses and cost numerous jobs. Beer wholesalers, meanwhile, have announced their own proposal, which focuses on specific regulations for hemp beverages that would establish a distribution system similar to alcohol.
TX – Commissioner of the Texas Department of Agriculture, Sidney Miller (R), has expressed support for a legislative debate on THC products, emphasizing the need for clear laws and regulation, and warning against the current unregulated hemp intoxicating product market, especially the risks attendant to easy product access by minors. The Commissioner tweeted, “I support cracking down on illegal, intoxicating THC products (over the 0.3 legal limit) being sold OTC and without age restrictions across Texas, but banning THC outright is a bridge too far.”
International
Canadian Medical Cannabis Exports Doubled in First Half of 2024 – According to the latest figures from Health Canada, which includes data up to June 2024, the first six months of the year saw the highest volume of medical cannabis flower exports, amid the rapid expansion of markets across Europe. From January to June 2024, 67,475.28 kg of dried cannabis flower was exported from Canada, a 98% increase on the 34,115.13 kg sold in the first six months of 2023.
France – The mayor of Grenoble is urging President Emmanuel Macron to initiate a national referendum on cannabis legalization, stating that “[t]he time has come to approach cannabis pragmatically and effectively.” France currently has a limited medical cannabis program, where cannabis products can only be obtained with a prescription and will only be prescribed when all other medications have failed to effectively relieve suffering.
India – The state cabinet of Himachal Pradesh, a state in northern India, has approved a state legislative report recommending the controlled cultivation of cannabis for industrial, scientific, and medicinal purposes, paving the way for its legalization. If legalized in the state, cultivation would be managed by two agricultural universities, while the Agriculture Department would provide ultimate oversight. While the report and reported next steps has garnered government support, opponents have voiced their concerns regarding a potential corresponding growth of the illegal market.
Business
JPMorgan Chase Executive Signals Opportunities for Banking Services Pending Federal Reform – The CEO of JPMorgan Chase, Jamie Dimon, said on a podcast that the company “probably would” start providing banking services to cannabis businesses if federal law changed to permit it, providing the financial institution with a legal roadmap to follow. Dimon indicated that “[the company doesn’t] bank marijuana companies because there’s no federal law around it” and therefore the business “simply can’t follow the law.”
“The Race for All-Powerful Pot” – An article published in the New York Times took a critical look at the cannabis industry, reporting concerns from scientists and health practitioners and an alleged general resistance from industry to increased restrictions or oversight.
Medicine
American Psychiatric Association Weighs in on Cannabis – The Association tweeted, “With researchers continuing to find that cannabis in all its forms is helping fuel the youth depression and suicide epidemic, psychiatrists have a role to play in assessing and treating cannabis use—and countering disinformation.” The Association opposes the use of cannabis as medicine and has issued position statements over the years on the “ongoing need to monitor and assess the public health and safety consequences of legalizing cannabis,” focusing on the impact of cannabis on children and adolescents.
Psychedelics
European Psychedelics Petition – A psychedelic advocacy group launched a petition calling for the European Commission to boost EU-funded research into psychedelic therapy. The group, named PsychedeliCare, called for standardized European safety guidelines for using psychedelics in therapeutic treatments and unified standards for classification of psychedelics.
Push to Legalize Psychedelics in Massachusetts Returns – At the start of the 2025 legislative session, legislators in Massachusetts have filed ten bills to push the legalization of certain natural psychedelic substances and therapeutic care. Voters previously rejected a ballot measure for legalization, but the new bills are intentionally more limited in scope than the previous ballot measure.
Please click here for more information on the Dentons US Cannabis group.
Authored by associates Malina Dumas, Lauren Estevez, Seena Forouzan, Kristina Grimaldi, Blair Johnsonand Jacob Raver.
“}]] Dentons Partner Eric Berlin and Senior Managing Associate Jacob Raver will be attending CannaDataCon in Miami Beach. Eric will be speaking on panel topic “THC Drink Regulations: Who’s at the Helm?” on Friday, February 7th. Read More
