Is 2025 the year for cannabis finance reform? Plus persistent psychedelic advocates in Massachusetts, and a new leader at the DEA
January 28, 2025
Welcome to another edition of buzzed!
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Policy & Advocacy
Psychedelics Maintaining Relevance in Massachusetts
A sweeping series of psychedelic reform bills have been introduced in the Massachusetts State Legislature, prompting a renewed effort in media coverage of the topic following a major failure at the ballot box last year.
In November 2024, voters were presented with Question 4: the Legalization and Regulation of Psychedelic Substances Initiative. The ballot measure sought to install a regulatory regime for psychedelics similar to that of Colorado’s, with licensed facilities being able to administer psychedelic treatments to individuals onsite, as well as decriminalization of at-home cultivation, possession, and use. In a result that many advocates (including myself) found surprising, the measure ultimately saw significant failure with 56.8% of voters rejecting the idea, and only 43.2% supporting.
However, failure of Question 4 is not discouraging advocates in the state. A series of 12 psychedelic-focused bills have been introduced, with reforms ranging from the establishment of pilot programs for licensed psychedelic treatment facilities, to the establishment of a task force and treatment support programs for veterans. While I won’t do a deep-dive into the legislation here, I encourage you to check out recent coverage by journalist and advocate Jack Gorsline in his piece shared by Marijuana Moment.
A major bill package like this in indicative of growing momentum behind psychedelic reform in the state, even after the failure of Question 4. Many fledgling legislative reform topics see legislation introduced every year in countless state Legislatures, usually singularly or with a small handful of bills that go relatively unnoticed. While the future of this particular legislation may be uncertain, the high-profile introduction of such a significant package is certainly sending a message: psychedelic reform is not going away. It represents a growing trend across the U.S. that is entirely reminiscent of early cannabis reform, and I suspect we’ll continue to see rapidly-accelerating legislative initiatives like this case in Massachusetts.
Microdoses 📍
🏦 Another attempt at cannabis banking reform? The now infamous SAFE Banking Act, aimed at reforming federal law around banking and financial access for the cannabis industry, is certain to see another attempt at passage this year. A staffer for Rep. David Joyce (R-OH)—a champion of the topic in Congress—has recently confirmed the upcoming reintroduction of the Act, although some hurdles remain in timing of such an introduction.
⛔️ Idaho holding strong in regressive prohibition. Late 1900s-esque legislation in the most prohibitionist state in America is advancing, with House Bill 7 proposing to set a mandatory minimum fine of $300 for cannabis possession. It’s an unfortunate yet unsurprising initiative from Idaho, who remains objectively the most regressive state for cannabis reform in the country.
Industry
Major Signals on the Future of Cannabis Finance
Aside from Congress’ perennial attempts to pass the SAFE Banking Act, recent statements from JPMorgan Chase’s leader Jamie Dimon are sparking hope for financial reform in the cannabis industry.
The ability of cannabis businesses to bank with players like JPMorgan Chase would be a game changer for the industry, which often still deals in cash-only transactions and the plethora of risks that come with it. In The Unshakeables podcast, Dimon provided some commentary on the issue, stating that the largest bank in the U.S. would likely do business with cannabis operators following a change in federal law.
It’s confirmation that the financial sector’s receptivity to the cannabis industry is likely high, and that Congress is the only roadblock for major tax relief and operational flexibility for state-regulated cannabis operators across the country.
Microdoses 📍
❌ Michigan cannabis processor facing another round of major accusations. Sky Labs, a cannabis processor based in Mount Morris, Michigan, has received its second series of formal complaints in only five months. The Cannabis Regulatory Agency alleges that the operator sourced more than 2,000 pounds of unregulated hemp isolate (that’s a lot) from an unlicensed supplier and failed to provide testing results for the product. The business faced similar allegations last year regarding the purchase of unregulated THCA concentrates, and has a significant history of violations prior to that. Outside observers can only hope that this is the final nail in the coffin for their problematic business decisions.
💰 Ex-VP of Verano Holdings charged with insider trading. A former executive of the multi-state cannabis operator Verano Holdings Corp. was recently indicted by federal authorities for insider trading. Prosecutors allege significant stock trading activity took place prior to the public announcement of a major merger, which was later canceled.
Science
New Findings Shows that CBD is Not Unique to the Cannabis Plant
While the discoveries took place in 2023 and earlier, some media outlets have re-upped headlines in recent months that researchers in Brazil discovered cannabidiol (CBD) in a non-cannabis plant species. Trema micranthrum, a tropical shrub found commonly throughout Brazil, was discovered to contain trichomes—similar to cannabis—that house CBD.
The discovery, although seemingly benign, could prove to be monumental for international CBD production. With many countries around the world maintaining strict bans on any and all forms of the cannabis plant, Trema micranthrum may serve as an alternative source of the compound (notwithstanding future legal battles). An abundant natural source like Trema that can also be cultivated agriculturally could lead to easier international CBD research, medicine, distribution, and sales to consumers.
Microdoses 📍
😴 Cannabis growing in popularity as a sleep aid. A new poll by Harris Polls, commissioned by multi-state cannabis operator Green Thumb Industries (GTI), shows cannabis outpacing prescription sleep medication and alcohol for use as a sleep aid. According to the poll, cannabis still falls behind supplements and over-the-counter sleep medication in prevalence of use.
The Archive 📚
Silk Road: Revolution, Controversy, and a Pardon
Among the flurry of post-inauguration headlines last week was a notable pardon that touched the drug policy and criminalization space. This week’s Archive is about a controversial individual by the name of Ross Ulbricht.
Ulbricht, who was also known by his online persona “Dread Pirate Roberts”, orchestrated a massive online marketplace known as the Silk Road (no, not the ancient trade route), where patrons could purchase illicit drugs, among a host of other illegal activities. The site rose to prominence in 2011, quickly surpassing $200 million in transactions, before Ulbricht was ultimately arrested in 2013 as the mastermind behind the operation. In 2015, he was sentenced to life in prison without the possibility of parole.
Fast-forward to 2025, and Ulbricht is a free man by way of a presidential pardon. So, what’s the controversy?
From the drug reformist’s standpoint, Silk Road was simply providing a semi-reputable marketplace for a legitimate consumer demand that would otherwise be met elsewhere. In addition, the site curated a community—a community that was able to provide feedback and public reviews for sellers. Ulbricht’s ability to publicize product and service reviews added a certain level of improved safety when compared to the back-alley dealings of old. If a substance was found to be laced, tainted, or otherwise lacking in quality or safety, its seller would receive a bad Yelp review of sorts—warning others to steer clear. Ulbricht’s defenders cite these viewpoints in their critique of his harsh sentence.
From a letter-of-the-law, strictly legal standpoint, Ulbricht was a prolific drug trafficker and money launderer. In this sense, it isn’t difficult to see why many view him and Silk Road as a criminal enterprise worthy of just punishment. In any case, his release from prison has many infuriated, and others celebrating.
If you’d like to learn a bit more about Silk Road and the Dread Pirate Roberts, check out the popular podcast Stuff You Should Know’s (one of my favorites) episode on the topic (“The Saga of Silk Road, November 19, 2024). Maybe you’ll change camps.
The Bad Trip 😵💫
New DEA Leadership Stuck in the Past
This week’s Bad Trip is the appointment of the new Drug Enforcement Administration’s (DEA) acting administrator, Derek Maltz. After a lengthy career with the DEA, it should come at no surprise that Maltz harbors some problematic views of cannabis—but with the current state of reform across the country, we deserve better…even from the DEA.
First among Maltz’s problematic stances is that cannabis is a gateway drug. This is a theory that has been disproven time and time again, and I think Rep. Omar (D-MN) summed it up nicely with “[that] is such a boomer thing to say”. In fact, countless studies have shown that the gateway theory holds little water. Some investigations have even suggested that cannabis legalization may have a beneficial impact on the abuse of other, more addictive and dangerous substances—that is, regulated availability of cannabis provides a safer alternative to opioids for management of certain pain symptoms, for example.
Next, Maltz has been cited expressing a belief that legal cannabis is the cause of school shootings. Another fear-mongering theory, with no substantive evidence demonstrating any connection between these shootings and cannabis legalization/use. Maltz is not unique in this asinine thought—it’s become a conservative talking point that the likes of Fox News’ Laura Ingraham have expressed before in quite vulgar terms. I find the theory to be yet another attempt to find a cultural scapegoat for the rise in school shootings, after holders of this view are done issuing their thoughts and prayers to wring their hands of the blood that remains from a lack of action (and actual ideas) to combat the purely American phenomenon.
Finally, Maltz also believes that cannabis legalization does not have an impact on illicit market activities. In a 2022 interview recently highlighted by Marijuana Moment, Maltz states “People aren’t going to pay for marijuana, as an example, with these high taxes in these states [that have legalized]. They’re going to get it from the cartels, and that’s just reality.” Wrong again. While regulated marketplaces don’t entirely eliminate illicit activity, as time progresses, and as certain policies surrounding taxation and product availability mature, regulated markets have proven to be quite successful at reducing organized illegal cannabis activity. So, I would ask Maltz a simple question: would he prefer 100% of the market to be illicit under cannabis prohibition, or would he settle for, say, 65% illegal activity under a regulated model? Perfect cannot be the enemy of good.
While it’s unclear if Maltz will be nominated to take on the DEA Administrator role in a formal long-term fashion, his service in an “acting” capacity should be enough to concern us about the direction cannabis reform might take under the new administration.
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That’s it for buzzed this week.
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-Keegan
A brief disclaimer about the views expressed in this publication. While I am employed in the cannabis policy consulting space, buzzed is a personal endeavor. The opinions, analysis, critiques, and predictions expressed in this newsletter are mine, and mine alone.
"Perfect cannot be the enemy of good" Well said! Really enjoyed this week's edition