Week In Review: North Carolina Governor Proposes Cannabis Legalization to Curb Unregulated Hemp Market; ProStar SEO Identifies Key Google Ranking Factors for Cannabis Businesses

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#) North Carolina Governor Proposes Cannabis Legalization to Curb Unregulated Hemp Market: North Carolina Governor Josh Stein (D) has urged legalization and regulation of adult-use cannabis to address growing public health concerns surrounding the state’s unregulated hemp-derived THC market. In a video posted on X, Stein noted that “unregulated THC products that are intoxicating” are widely available in vape shops, with no age restrictions or labeling requirements, allowing youth access.

2#) ProStar SEO Identifies Key Google Ranking Factors for Cannabis Businesses: ProStar SEO, a Canadian firm specializing in search engine optimization, has released new insights identifying the most influential Google ranking factors specific to cannabis industry websites. The report, based on a large-scale analysis of more than 5,000 potential variables, aims to guide cannabis businesses in enhancing their organic search visibility amid stringent advertising restrictions and ongoing regulatory uncertainty.

3#) Michigan Cannabis Retailer to Pay $205K in Settlement Over Workers’ Lost Tips: Federal Judge Matthew Leitman has approved a $205,000 settlement in a lawsuit filed by employees of Timber Cannabis, a seven-location cannabis dispensary chain in Michigan. The lawsuit alleged that management appropriated tips left by customers in 2024, after budtenders had previously earned up to $150 per shift in gratuities

4#) Trump Administration Supports Psychedelic Research in Mental‑Health Efforts: The Trump administration is showing growing support for research into psychedelics such as MDMA, psilocybin, and ibogaine as potential treatments for mental health conditions. Led by Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., the administration is emphasizing evidence-based approaches to evaluate these substances, particularly for conditions like post-traumatic stress disorder (PTSD), depression, and addiction. Veterans’ mental health is a key focus of this initiative.

5#) U.S. Whiskey Consumption Slows as Cannabis and Wellness Trends Gain Traction: Brown‑Forman Corp., producer of Jack Daniel’s Tennessee Whiskey, cites three primary factors contributing to reduced whiskey consumption in the U.S.: increasing cannabis use, the popularity of GLP‑1 weight‑loss medications, and softer demand among Generation Z. CEO Lawson Whiting emphasized that these are pressing challenges for the category, noting that this trend has persisted for about 18 months across the industry.

6#) North Carolina Governor Establishes Cannabis Advisory Council Amid Unregulated THC Market: North Carolina Governor Josh Stein has issued an executive order forming a 24–30 member North Carolina Advisory Council on Cannabis to develop policy recommendations aimed at regulating cannabis products and formalizing legalization strategies, including adult-use proposals.

7#) Cannabis Stocks Decline as Federal Reform Stalls in U.S: U.S. cannabis stocks have declined sharply as investor enthusiasm dampens amid continued delays in federal reform. The AdvisorShares Pure US Cannabis ETF dropped around 48% in 2024, with company shares like Curaleaf, Verano, and Green Thumb falling between 31% and 73%.

8#) GOP Panel Requests Review of Cannabis Rescheduling by Biden Administration: A Republican-led congressional subcommittee is urging a formal investigation into the Biden administration’s handling of the federal cannabis rescheduling process. The request, made in a report accompanying the fiscal year 2026 funding bill for the Department of Health and Human Services (HHS), centers on concerns that the administration deviated from long-established drug evaluation standards.

9#)Malaysia Weighs Cannabis Vaporizer Manufacturing for Export: Malaysia’s Cabinet is set to decide whether to permit the manufacturing of cannabis vaporizer hardware for export, as Health Minister Datuk Seri Dr. Dzulkefly Ahmad confirmed following a multi-agency review. The proposal centers on a Johor-based facility operated by Ispire Technology Inc., a Nasdaq-listed company, which currently holds a federal licence to manufacture nicotine-related products.

Psychedelic Sector Update

1#) Psychedelic Drugs Market Projects Significant Growth Through 2029:The global psychedelic drugs market is projected to experience substantial growth, with estimates indicating an increase from $6.39 billion in 2025 to $11.93 billion by 2029, reflecting a compound annual growth rate (CAGR) of 16.9% during this period.

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