Week In Review: Cross-currents in Cannabis and Psychedelics: Legal Momentum, Market Shakeups, and Policy Flashpoints Define the Week

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 UPDATES

1. Republican Lawmakers Move to Ban Hemp-Derived THC

A proposal tucked into the 2024 Farm Bill is gaining bipartisan traction in the Senate and could outlaw intoxicating hemp-derived cannabinoids like Delta-8 and THCA. These products have exploded in popularity due to their legality in non-recreational states, but lawmakers are calling for a crackdown due to safety concerns and regulatory gaps. If passed, this bill would dismantle a large segment of the hemp-derived THC market and reshape the national competitive landscape. Here’s our analysis.

2. Pennsylvania Unveils Bipartisan Adult-Use Cannabis Bills

State lawmakers in Pennsylvania introduced two companion bills to legalize adult-use cannabis, marking a coordinated bipartisan push. The legislation includes provisions for social equity, home grow, and a regulated market structure. As the state faces budgetary constraints and increasing public support—87% of Americans now back legalization according to Pew—the political will for reform appears to be ripening. Here’s the latest.

3. Illinois Fails to Regulate Hemp THC—Lawsuits Loom

Despite calls from industry and public health stakeholders, Illinois lawmakers ended the session without passing regulations for hemp-derived intoxicants. The lack of oversight has created a thriving gray market and competitive disadvantage for licensed cannabis operators. Legal challenges are now mounting as the courts become the next battleground for regulation.

4. Kentucky Begins Cultivation for Medical Marijuana Program

Kentucky’s medical marijuana program hit a new milestone this week as licensed cultivators began planting the state’s first legal cannabis crops. Dispensaries are scheduled to open in early 2025, giving Kentucky patients access to regulated medical cannabis for the first time. The development signals meaningful progress in a state long considered resistant to reform. Here’s the latest.

5. California Farmworker Dies in ICE Raid at Cannabis Facility

Tragedy struck the cannabis industry in California after a 57-year-old farmworker, Jaime Alanis Garcia, died during an immigration raid at Glass House Farms. The incident has drawn national scrutiny and raised urgent questions about labor rights, workplace safety, and the role of federal immigration enforcement in state-legal cannabis markets. Advocates are calling for immediate investigations and stronger labor protections. Here’s the latest.

6. Minnesota Prepares First Retail License Lottery

Minnesota regulators confirmed that the state’s inaugural adult-use license lottery will be held next week. Applicants meeting social equity criteria are being prioritized to ensure a fair and inclusive launch. The outcome of this process will shape the state’s early retail market and set a precedent for other states considering lottery-based licensing models.

7. MariMed Expands ‘Betty’s Eddies’ to Medical Market in Maine

MariMed is expanding its popular Betty’s Eddies edibles into Maine’s medical cannabis market through a partnership with The Stoned Moose. The move opens up access to patients and aligns with market trends, as medical cannabis still represents over half of Maine’s total cannabis sales. The agreement also positions MariMed to serve both medical and adult-use channels more effectively.

8. AYR Wellness Secures Short-Term Debt Relief

AYR Wellness announced that it has received an extension on its senior debt waiver agreement, moving the deadline to July 18. This buys the company critical time to resolve delayed filings and missed payments without triggering default. However, the development underscores broader financial vulnerabilities plaguing many publicly traded cannabis MSOs. Here’s the latest.

9. Würk Adds On-Demand Pay Option via DailyPay

Cannabis payroll software firm Würk has integrated with DailyPay to offer real-time earned wage access to workers. The feature allows employees to withdraw their earnings ahead of payday—a significant benefit in an industry often marked by hourly labor and staffing shortages. This move strengthens Würk’s value proposition as a compliance-focused HR solution.

10. European Legalization Momentum Grows

European cannabis reform continues to gain steam, with countries like Germany, Malta, and Luxembourg implementing new adult-use frameworks. Germany now allows possession, home grow, and non-profit clubs, while Malta and Luxembourg have legalized limited personal use. Though commercial sales remain restricted, momentum across the EU suggests broader policy liberalization is on the horizon.

PSYCHEDELICS SECTOR SNAPSHOT

1. Canadian Court Favors Psilocybin Access for Therapists

A federal judge in Canada ruled that Health Canada must revisit its rejection of psilocybin therapy exemptions for healthcare professionals. The case, brought by advocacy group Therapsil, could establish precedent for broader professional access to psychedelic-assisted therapies. It’s a significant moment in Canada’s evolving approach to mental health innovation.

2. RFK Jr. and Trump Officials Rally Behind Psychedelics

In a rare show of bipartisan unity, public figures like RFK Jr. and former Trump officials are endorsing the therapeutic potential of psychedelics. Their support follows an FDA decision to deny MDMA-assisted PTSD therapy fast-track designation. These endorsements are helping normalize the conversation and may influence legislative and regulatory agendas.

3. Trump Signs Bill Expanding Research on Schedule I Drugs

Donald Trump signed a new federal law streamlining research access to Schedule I substances like cannabis and psychedelics. The bill reduces bureaucratic hurdles and aims to foster more scientific studies and drug development. This could prove transformative for psychedelic biotech and medical cannabis research in the U.S.

4. Red Light Holland Hedges with Bitcoin After ‘Debanking’

Ontario-based Red Light Holland has appointed crypto influencer Scott Melker to lead a Bitcoin treasury strategy after being “debanked” by a major financial institution. The move reflects ongoing financial access issues in the psychedelics space. By turning to crypto, Red Light hopes to safeguard liquidity and attract nontraditional investors. Here’s the latest.

5. Veteran-Focused Psychedelic Retreats Show Tangible Results

New studies highlight the effectiveness of psychedelic-assisted retreats in helping veterans manage PTSD and depression. These programs, often involving psilocybin or MDMA, have shown improvements in emotional well-being and reintegration. They could help pave the way for expanded therapeutic access and insurance support. Here’s more on the topic.

📉 MARKET RECAP: CANNABIS COOLS, PSYCHEDELICS PERK UP

Cannabis markets dipped slightly this week, with the MSOS ETF down roughly 2% amid concerns over federal hemp regulation and financial strain at major MSOs like AYR Wellness. Investors appear to be re-evaluating risk across the sector, particularly where debt burdens and delayed filings are involved. Meanwhile, psychedelic stocks such as Compass Pathways and MindMed saw 3–5% gains, buoyed by court wins, political endorsements, and long-term optimism around research-based business models.

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