Week’s In Review: Ohio Legislature Considers Ban on Intoxicating Hemp Products; Florida’s Cannabis Legalization Measure Fails Despite Majority Support; Climate First Bank Introduces Cannabis-Focused Financial Services in Florida; DEA Postpones Cannabis Rescheduling Hearings to 2025

LOS ANGELES — Welcome to the far too-exciting world of cannabis and psychedelics, where it’s a tale of two markets with some states doing amazingly well. And some, well…they’re not doing so well (hello New York). Let’s get to it! 

Cannabis Industry Highlights

#1) Ohio Legislature Considers Ban on Intoxicating Hemp Products: Ohio lawmakers are evaluating Senate Bill 326, introduced by State Senator Steve Huffman (R-Tipp City), which aims to prohibit the sale of intoxicating hemp products. The proposed legislation defines such products as those containing more than 0.5 milligrams of delta-9 THC per serving, 2 milligrams per package, or 0.5 milligrams of total non-delta-9 THC per package.

#2) Florida’s Cannabis Legalization Measure Fails Despite Majority Support: In the recent election, Florida’s Amendment 3, which proposed the legalization of recreational cannabis for adults aged 21 and over, received 56% voter support. However, it fell short of the 60% supermajority required for constitutional amendments in the state, resulting in its failure.

#3) Climate First Bank Introduces Cannabis-Focused Financial Services in Florida:Climate First Bank, headquartered in Orlando, Florida, has introduced specialized banking services tailored for the cannabis industry. This initiative aims to address the financial challenges faced by cannabis businesses, particularly in accessing traditional banking services. The bank’s offerings include deposit accounts, cash management, and lending solutions, all designed to comply with federal and state regulations.

#4) DEA Postpones Cannabis Rescheduling Hearings to 2025: The U.S. Drug Enforcement Administration (DEA) has postponed its hearings on the proposed rescheduling of cannabis under the Controlled Substances Act (CSA) to early 2025. The delay follows a preliminary order from Chief Administrative Law Judge John Mulrooney II, who identified deficiencies in the information provided about the 25 designated participants selected by DEA Administrator Anne Milgram.

#5) RIV Capital’s Revenue Doubles Amid New York Cannabis Market Expansion: RIV Capital Inc. reported a significant increase in net revenue for the third quarter ending September 30, 2024, achieving $4.9 million—a 28% rise from the previous quarter and a 186% surge compared to the same period in 2023.

#6) Cannabis Industry Faces Rising Threat of Ransomware Attacks: The cannabis industry is increasingly becoming a target for ransomware attacks, with the Everest Ransomware group recently focusing on this sector. In November 2024, two cannabis operators were listed as victims on Everest’s dark-web blog within a single week. The second victim was identified as a client of the first, a software-as-a-service vendor, highlighting the risks associated with third-party vendors.

#7) Global Developments in Cannabis Legalization in 2023: In 2023, several countries made significant strides in cannabis legalization, reflecting a global shift in drug policy.

Psychedelic Sector Update

1#)Psychedelic Drugs Market Poised for Growth: From $0.7B in 2022 to $2.6B by 2032: The global psychedelic drugs market is projected to expand from $0.7 billion in 2022 to $2.6 billion by 2032, reflecting a compound annual growth rate (CAGR) of 13.4%.According to Allied Market Research

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