Week In Review: DEA’s Proposed Rescheduling of Cannabis Sparks Public Response; The Battle Over Recreational Cannabis Legalization Heats Up; Harris-Walz Ticket First to Support Federal Cannabis Legalization

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 DEA’s Proposed Rescheduling of Cannabis Sparks Public Response: The Drug Enforcement Administration (DEA) has proposed rescheduling cannabis under federal drug law, moving it from Schedule I to Schedule III. This shift reflects changing perceptions about cannabis, which is currently classified alongside drugs deemed to have “no currently accepted medical use and a high potential for abuse,” such as heroin and ecstasy. The proposed change would reclassify cannabis as having “a moderate to low potential for physical and psychological dependence,” similar to substances like testosterone and Tylenol with codeine.

#2 The Battle Over Recreational Cannabis Legalization Heats Up: The debate around legalizing recreational cannabis continues to draw support and opposition from various societal factions. Central to this contentious issue is a push to amend state laws to allow adults aged 21 and over to legally possess and purchase cannabis. This article examines the latest developments in one state’s efforts toward this goal, highlighting key players, funding efforts, and the potential societal impacts discussed by proponents.

#3 Harris-Walz Ticket First to Support Federal Cannabis Legalization: Vice President Kamala Harris and Governor Tim Walz have made history by becoming the first major party presidential ticket to endorse the federal legalization of cannabis. This move aligns with the growing national support for cannabis reform, with polls indicating a significant majority of voters favoring legalization.

#4 Aurora Cannabis Reports Q1 Fiscal 2025 Financial Results: Aurora Cannabis has announced its financial results for the first quarter of fiscal 2025, ending June 30, 2024. The company reported positive free cash flow, increased revenue, and substantial growth in its global medical cannabis segment.

#5 NYC Crackdown on Illegal Cannabis Shops Shutters 3,000, Creating Opportunities for Legal Retailers: New York City has intensified its efforts to close nearly 3,000 unlicensed cannabis dispensaries, a move that could provide a boost for legal retailers struggling with high rents and intense competition. Since the state authorized the crackdown last month, hundreds of illegal shops have been shut down, with many more voluntarily closing to avoid enforcement actions.

#6. 98 is the number of dispensaries opening this week in Ohio. Read our article here for more details on Ohio’s momentous news.

Psychedelic Sector Update

#1 Experts Advocate for Rescheduling Psilocybin to Unlock Mental Health and Economic Benefits: A group of academics from The University of Manchester, supported by Policy@Manchester, has submitted evidence advocating for the rescheduling of psilocybin under the UK’s drug laws. The submission, authored by Professor Jo Neill, Dr. Sara Tai, and Dr. John Gigg, highlights the therapeutic potential of psilocybin and other psychedelics in treating severe mental health disorders. They argue that the current classification of psilocybin as a Schedule 1 drug under the Misuse of Drugs Act, 1971, is hindering research and development in this field. (Source)

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