CANNASWEEP

June & July 2025

OFW’s Cannabis Team regularly monitors cannabis news, legislation, regulation, and policy so our clients stay up-to-date on the latest developments impacting their business.

If you have any questions or would like more information about any of the items below, please contact us.

We also track cannabis-related legislation introduced in the U.S. Congress.  If you would like to learn more about our Congressional Bill Tracker, please reach out to Ben Dash. 

Cannabis Rescheduling/Descheduling

• The Drug Enforcement Administration (DEA) said in an update to an agency judge that the cannabis rescheduling process is still on hold and “remains pending” before the Acting Administrator.
• A study of public comments on rescheduling found that despite negative attitudes toward the DEA’s proposed move to Schedule III, a majority of comments supported taking a step further to deschedule marijuana altogether.

Executive Branch/Enforcement

• A Department of Veterans Affairs (VA) spokesperson issued a policy clarification stating that because marijuana remains a Schedule I substance, “VA health care providers cannot recommend it or help veterans obtain it.”
• The Bureau of Land Management announced its intention to award a federal contract for “reclamation activities from public land cannabis cultivation complexes.”
• The DEA is asking the U.S. Court of Appeals to dismiss a lawsuit filed against it by an Iowa-based psychedelic church.
• A Department of Defense (DOD) contractor is suing the federal government, alleging that questions about past marijuana use during a security clearance process violated his Fifth Amendment right against self-incrimination.
• Federal immigration agents raided two California marijuana farms run by Glass House Brands, arresting hundreds of workers and detaining minors as part of a broader immigration crackdown; the White House called the company a “clear-cut example of labor trafficking.” Glass House denies the accusations, stating it never knowingly violated hiring laws or employed minors
• President Donald Trump withdrew the nomination of Sara Carter to lead the Office of National Drug Control Policy (ONDCP), reportedly so she could be renominated under her legal name, Sara Bailey.

U.S. Congress

• The Senate Appropriations Committee approved legislation to ban consumable hemp products containing any quantifiable amount of THC. However, a bipartisan agreement was reached to delay the prohibition’s implementation for one year, giving the industry time to adjust. In response to a similar measure in the House, Senator Rand Paul (R-KY) stated that a bill banning hemp products with any amount of THC would “completely destroy the American hemp industry.”
• A new report from the Congressional Research Service (CRS) notes that courts across the country are “grappling with…renewed constitutional attacks” against the federal law that prohibits marijuana consumers from owning firearms.
• Senator Jeff Merkley (D-OR), a key sponsor of the SAFER Banking Act, indicated that the cannabis banking bill will be taken up “hopefully sooner than later,” but acknowledged that other legislative priorities have so far prevented key lawmakers from advancing it.
• Bipartisan members of Congress filed an amendment to shift $10 million in DOD funding specifically to support psychedelic medical clinical trials for service members.
• Rep. Lou Correa (D-CA) tweeted about a meeting of the Psychedelic Assisted Therapy Caucus, stating, “To date, the psychedelic therapies promise to revolutionize how we treat mental challenges not only for Vets, but others in our society. We’ll continue to fight for our vets.”

The States

• Alabama: A judge rejected a request for a temporary restraining order against certain parts of the state’s hemp product restriction law.
• Arkansas: Court Rules Arkansas’ Hemp Ban Not Preempted by Federal Law; Dispensaries sold $23.2 million worth of medical cannabis products in June
• California: Regulators are seeking to hire a PR firm to conduct a cannabis consumer awareness and education campaign. Additionally, Governor Gavin Newsom announced that state officials seized $476 million worth of illegal cannabis between April and June. The California Senate Budget and Fiscal Review Committee has approved a bill to ratify a labor agreement that ends random drug tests for marijuana for most correctional officers in the state’s prison system.
• Colorado: Colorado weed labels may be overselling the high, study finds; Regulators are taking initial steps toward allowing ibogaine at psychedelic healing centers.
• Connecticut: It has been four years since Connecticut’s recreational marijuana legalization law took effect, revealing an analysis showing how cannabis product sales trends have evolved over that time. 
• Delaware: The Office of the Marijuana Commissioner announced that recreational cannabis sales will commence on August 1. Governor Matt Meyer stated the new industry will “generate critical revenue to strengthen our schools, infrastructure, and public health systems, while creating real opportunities for entrepreneurs.”
• Florida: Governor Ron DeSantis has signed a bill that revokes the medical cannabis patient and caregiver registrations of anyone convicted of certain drug crimes.
• Georgia: The agriculture commissioner announced the arrests of suspects in an interstate hemp oil theft case.
• Hawaii: Governor Josh Green signed a bill expanding medical cannabis access by allowing some doctors to recommend it for any condition via telehealth.
• Illinois: The Chicago Police Department is implementing a new policy to discourage searches based on the smell of raw, unburnt marijuana. This change comes as part of an ongoing lawsuit seeking reform.
• Iowa: An Iowa Republican representative who supports the legalization of psilocybin for medical use has praised Governor Kim Reynolds’s veto of a bill that would have only permitted a synthetic version of the psychedelic.
• Kentucky: Regulators are being sued over the medical cannabis business licensing process.
• Maine: Governor Janet Mills signed budget legislation that includes provisions to increase marijuana taxes.
• Maryland: Governor Wes Moore has announced a search for a new location for the nation’s first state-owned cannabis incubator, following community pushback against the original site.
• Michigan: The Cannabis Regulatory Agency announced the election of its executive director to the board of the Cannabis Regulators Association.
• Minnesota: A law to increase marijuana taxes has taken effect.
• Missouri: Regulators have announced a recall of marijuana products that contain an ingredient not listed on the compliance label. Retailers sold $125.1 million worth of legal marijuana products in June.
• Nebraska: The Medical Cannabis Commission has approved emergency rules that will permit regulators to start accepting business license applications. However, these rules prohibit patients from accessing marijuana flower, infused food or drinks, and any products administered by smoking or vaping. A former state senator has also asked the state Supreme Court to review a case he filed to overturn the voter-approved legalization law.
• New Hampshire: The Senate has tabled a bill that would have lowered penalties for first-time psilocybin possession, which had narrowly passed the House of Representatives.
• New Jersey: Lawmakers have decided against increasing the cannabis social equity excise fee in the new budget.
• New York: Regulators have published guidance on preempting “unreasonably impracticable” local cannabis laws.
• Ohio: Lawmakers have sent Governor Mike DeWine budget legislation that permits localities to retain marijuana revenue, despite an earlier effort to direct all funding to the state.
• Oklahoma: Marijuana activists have successfully cleared a challenge period for their legalization initiative and plan to begin collecting signatures to place the measure on the 2026 ballot.
• Pennsylvania: Bipartisan senators have introduced a new bill to create a Cannabis Control Board to oversee both the existing medical marijuana program and a potential future adult-use market.
• Texas: A new poll shows that 53% of Texas voters oppose outlawing hemp products. This aligns with Governor Greg Abbott’s veto of a bill that would have banned hemp consumables with any amount of THC.
• Vermont: Regulators have published updated guidance on various cannabis issues.
• Wisconsin: The Senate and Assembly have rejected amendments to restore marijuana legalization provisions in the budget that were initially included by Governor Tony Evers but later removed by the Republican majority.

Cannabis Abroad

• UN Office on Drugs and Crime (UNODC) published the World Drug Report 2025
• Canada: The Israeli Ministry of Justice official issued an opinion upholding the Minister of Finance’s rejection of tariffs on Canadian medical cannabis imports; Active medical cannabis patient registration counts continue to decline.
• Australia: Lawmakers in New South Wales discussed decriminalizing marijuana.
• United Kingdom: The Food Standards Agency (FSA) has published updated guidance on CBD products.
• Thailand: The U.S. Embassy and Consulate in Thailand posted an alert about changes to that country’s marijuana laws following a policy shift.

Business, Banking, Insurance

• Trulieve Cannabis Corp. filed a shelf registration statement for a base shelf prospectus but stated it has no immediate plans to offer or sell any new securities.
• TerrAscend Corp. announced it is exiting the Michigan cannabis market as part of its strategic realignment.
• Curaleaf Holdings, Inc. announced that it bought out its minority partner in Curaleaf International Holdings Limited.
• Organigram Global Inc. launched a new e-commerce platform for its recently acquired beverage business, Collective Project.
• Blum Holdings, Inc. is moving forward with the acquisition of another dispensary in Northern California.
• Blue Sky Hemp Ventures Ltd. has sold its hemp-based food division to Fresh Hemp Foods.

Research

• A study published in JAMA Neurology suggests that individuals who receive acute care for cannabis use may be at an increased risk for incident dementia compared to the general population.
• A new federally funded study determined that starting treatment with THC-dominant medicinal cannabis was linked to immediate reductions in anxiety and depression.
• A study on product labeling found significant discrepancies based on product type, with 96% of concentrate products being within ±15% of their labeled THC content, compared to only 56.7% of flower products.
• Federally funded scientists argued in a new journal article that marijuana’s Schedule I status creates a “paradox” that traps researchers, as proving medical value requires studies that are heavily restricted.
• A new study has linked more frequent cannabis use with a greater daily sexual desire.
• A review of existing studies concluded that psychedelic-assisted therapy is a viable treatment option for PTSD, especially when using MDMA. 
• A separate review concluded that given the economic toll of the opioid epidemic, psilocybin represents a “high-impact, cost-effective alternative worthy of rigorous investment and policy support.”
• Another study found that MDMA, when combined with supportive therapy, is a safe and effective treatment for PTSD.
• A new government-funded study revealed that “naturalistic use of psychedelics is associated with longitudinal improvements in anxiety and depression during global crisis times,” such as the COVID-19 pandemic.
• A new Pew Research Center poll shows that nearly 90% of American adults believe marijuana should be legal for either recreational or medical use. 
• A new survey of marijuana consumers in the Des Moines, Iowa area found they are generally employed, own homes, vote regularly, and are involved in their communities.

Other Noteworthy Updates

• Celebrities, including Mike Tyson, Kevin Durant, and Allen Iverson, sent a letter to President Trump urging him to reschedule marijuana, release cannabis prisoners, and support banking access for the industry.
• A science experiment to study how cannabis seeds fare in space, with the goal of one day planting the crop on the moon or Mars, failed after the SpaceX capsule carrying the payload crashed into the Pacific Ocean.

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If you are interested in exploring commercial opportunities in the cannabis space, we would be happy to assist you in any of your cannabis law questions, comments, or concerns. Please contact Tish Pahl (tpahl@ofwlaw.com), Kyla Kaplan (kkaplan@ofwlaw.com), Denise Calle (dcalle@ofwlaw.com), and Ben Dash (bdash@ofwlaw.com) for assistance.