420 with CNW — How US Marijuana Breeders Could Protect Their IP Prior to Legalization

Veteran marijuana breeder James Loud is setting his sights on a niche that continues to grow: pre-rolls and ready-to-use joints. Over the next few years, he plans to develop plant varieties tailored for these products, with a focus on durability and consistency during storage and transport. 

For manufacturers, longer-lasting marijuana that holds its quality in prepackaged form could offer a clear advantage. But for breeders like Loud, the challenge goes beyond cultivation. Safeguarding original work remains a persistent concern, particularly in a market where federal prohibition still complicates intellectual property protections. 

Loud, founder of James Loud Genetics, relies on sophisticated breeding methods and tissue culture to create new strains. While federal law limits traditional protections, he has explored several legal avenues. These include plant variety protection through the Agriculture Department, as well as plant and utility patents issued by the U.S. Patent and Trademark Office (USPTO). 

In practice, however, Loud often turns to private contracts. Licensing deals, commonly referred to as material transfer agreements, allow partners to grow his genetics under strict terms. Those agreements prohibit replication, limiting partners to cultivation only. 

Legal experts caution that such contracts have limits. Dale Hunt, a San Diego intellectual property attorney, noted that these agreements depend on all parties honoring them. If plant material reaches someone outside the contract, enforcement becomes difficult, especially if that party is unaware of its origin. 

Despite these hurdles, industry observers expect cannabis genetics to follow a path similar to other agricultural sectors. 

Still, cannabis presents a more complicated case. Many modern strains build on genetics developed before legalization. That raises questions about whether early breeders can assert rights over their work in today’s regulated markets, particularly when competing against large, well-funded companies. 

Recent developments overseas highlight the stakes. Aurora Cannabis, a Canadian producer, has secured plant variety rights in the European Union for two high-potency strains. According to observers, the move signals a shift toward formal protections for cannabis genetics on a global scale. 

U.S. breeders, especially those who operated before legalization, may struggle to benefit financially if others secure rights first in international markets. 

Aurora says its protected varieties can deliver significantly higher yields using the same resources, making them appealing to growers. The company plans to continue expanding its breeding efforts and licensing its genetics abroad, particularly as it shifts focus toward medical cannabis and international production, including operations in Germany. 

In the U.S., federal restrictions still limit certain protections. The USDA’s plant variety program applies only to hemp, defined as cannabis containing no more than 0.3 percent THC. Securing such protection requires extensive testing to prove a plant’s distinct characteristics, uniformity, and stability, a process that can be costly and time-consuming. 

For smaller breeders, those barriers can be difficult to overcome. Some are choosing to wait for clearer regulations, while others are moving forward with available tools, despite the risks. 

Patent options remain available through the USPTO, though they come at a high price. A utility patent can cost tens of thousands of dollars, prompting breeders to weigh the commercial value of their creations against the expense and effort required to defend those rights. 

As the cannabis sector continues to mature, more companies may adopt formal protections. For now, breeders must balance innovation with caution in an industry still defining its legal boundaries. Questions about evolving legal boundaries are also being faced by firms like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) and other licensed entities engaged in growing and selling marijuana products. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Study Suggests Marijuana Compounds Could Potentially Reverse Liver Disorder

Compounds derived from marijuana may offer a new direction for addressing one of the most widespread chronic liver illnesses worldwide, according to recent findings from researchers at Hebrew University of Jerusalem. 

The study found that cannabigerol (CBG) and cannabidiol (CBD) lowered fat buildup in the liver and improved several markers tied to metabolic function in laboratory models. 

CBD is among the most extensively researched cannabis compounds that does not cause intoxication. CBG, by contrast, appears in smaller quantities in the plant and serves as a biochemical precursor during the formation of other cannabinoids, including CBD. 

Unlike THC, neither CBD nor CBG produces psychoactive effects. Because of this, scientists consider them potential candidates for therapies that could be used over extended periods. 

The research focused on metabolic dysfunction-associated steatotic liver disorder, commonly abbreviated as MASLD. Health experts estimate that the disorder affects roughly one in three adults around the globe. 

The illness is strongly tied to insulin resistance and obesity, with limited treatment options. Doctors typically recommend diet changes, weight loss, and increased physical activity, but long-term adherence can be difficult for many patients. 

Lead researcher Joseph Tam, who heads the Multidisciplinary Center for Cannabinoid Research at the university, said the team uncovered a biological pathway that may explain the benefits seen in their experiments. According to Tam, the cannabinoids improved the liver’s ability to manage energy and maintain cellular recycling systems. 

During the experiments, the compounds triggered what scientists described as metabolic remodeling. This process effectively created an energy reserve inside liver cells. Researchers observed a rise in phosphocreatine, a molecule that stores energy in tissues such as muscle. The extra supply functioned as a reserve power source, helping the liver continue functioning even under the strain of a high-fat diet. 

The team also documented improvements in cellular recycling systems. Enzymes known as cathepsins, which operate within lysosomes responsible for degrading unwanted materials, regained activity after treatment with cannabinoids. 

When those enzymes function properly, liver cells can more effectively remove harmful fats and debris. The liver cleared out greater amounts of lipids linked to metabolic disease, including ceramides and triglycerides, substances that can promote inflammation. 

Both cannabinoids produced beneficial changes, though CBG showed stronger effects in certain measurements. It was associated with lower total body fat, reduced levels of low-density lipoprotein cholesterol, and improved response to insulin. 

The researchers believe the results suggest a broader possibility for plant compounds in treating metabolic disorders. Instead of focusing only on symptoms, the strategy targets how cells produce energy and dispose of waste products. 

Still, they note that clinical trials will be required to determine whether the same benefits appear in people and to establish safe treatment guidelines. 

These research findings provide additional support for the views of cannabis firms like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) that believe the full therapeutic potential of marijuana and its compounds is yet to be fully documented by science. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — What Employers Should Know About the Proposed Easing of Federal Cannabis Laws

Cannabis remains listed as a Schedule I substance under the Controlled Substances Act (CSA), a category reserved for drugs considered to have a high likelihood of misuse and no recognized medical purpose. That designation has shaped federal drug policy for decades and continues to influence workplace rules across the country. 

In 2023, the Biden administration backed a proposal to shift cannabis to a different category. Last year, President Donald Trump signed an order instructing the Justice Department to move forward with the formal rulemaking process to reclassify cannabis as a Schedule III substance. 

Moving marijuana into that group would signal federal recognition that it has accepted medical use in the United States. Such a change could carry significant consequences for workplaces across the country. 

For now, however, nothing has officially changed. The federal review is ongoing, and marijuana remains in Schedule I until the process is finalized. Federal rulemaking often moves slowly, and the executive order did not set a clear timeline. Employers should assume that existing federal requirements remain in place. 

That means workers in safety-sensitive roles must continue to comply with mandatory drug testing rules. For instance, under the Department of Transportation regulations, employees who perform certain critical duties are prohibited from using cannabis and are subject to routine screening. This includes airline pilots, truck drivers, school bus operators, train engineers, subway operators, aircraft maintenance crews, and armed transit security staff, among others. 

Even if cannabis is eventually reclassified, businesses are still expected to retain the authority to enforce policies that ban impairment on the job. Employers would likely continue to conduct drug testing and prohibit on-duty use, provided those policies align with state and local laws. 

A shift to Schedule III could also affect disability discrimination claims. More than 35 states have legalized marijuana for medical purposes, yet federal courts have generally dismissed claims under the Americans with Disabilities Act (ADA) tied to medical cannabis use. Judges have pointed to the drug’s current illegal status under federal law as a key reason. 

The ADA does offer protections for individuals who use certain controlled substances under a valid prescription. If cannabis gains recognition as an accepted treatment at the federal level, employees may attempt to argue that disciplinary action based solely on medical use violates disability law. 

It remains unclear whether such claims would increase significantly, but employers would still be able to address workplace safety concerns. Companies may act if an employee’s use creates a direct safety risk, if the individual is impaired while working, or if a requested accommodation is unreasonable, such as seeking permission to consume marijuana during work hours. 

Local and state regulations add another layer of complexity. Even if federal law changes, businesses must comply with rules in the jurisdictions where they operate. Some states provide specific protections for registered medical marijuana patients. In Arizona, for example, the law bars employers from discriminating against workers or applicants solely because they hold a valid medical marijuana card, subject to certain exceptions. 

Marijuana companies within and outside the country, such as Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be monitoring how workplaces change their policies once the federal rescheduling is eventually completed and codified. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Marijuana Legalization Could Lower Daily Opioid Use

Expanding legal access to marijuana for both recreational and medical use may be linked to lower levels of daily opioid consumption among people who inject substances, according to new research led by a scholar at the Boston University School of Public Health. 

The study examined drug use patterns across U.S. states with different cannabis laws. Researchers found that states allowing marijuana for both recreational and medical use experienced a drop of roughly 9% to 11% in daily opioid use among individuals who inject drugs. That reduction was notably larger than in states where marijuana was approved only for medical reasons. 

The results suggest that access to regulated marijuana may offer an alternative to an increasingly unpredictable and dangerous opioid supply, which accounts for 75% of overdose deaths in the U.S. 

The research comes amid major shifts in federal and state drug policy. Last year, President Donald Trump signed an order reclassifying cannabis from Schedule I to Schedule III. At the state level, nearly all states permit marijuana for medical purposes, while about half allow adults to purchase it for recreational use. 

Persons who inject substances remain among those most affected by the opioid crisis. By focusing on this group, the study builds upon earlier research that often examined the general population and yielded mixed conclusions. The authors say this narrower focus helps clarify how cannabis policies might affect individuals facing the highest overdose risks. 

Dr. Danielle Haley, the study’s lead author and an assistant professor at BUSPH, said the scale of the change stood out. She noted that participants were long-term opioid users who would typically experience withdrawal symptoms when cutting back. Haley added that a regulated and safer supply of substances can play an important role in overdose prevention by reducing reliance on unregulated drugs. 

To conduct the analysis, the research team used data from the CDC and NHBS. The dataset included nearly 29,000 persons who inject substances across 13 states, with survey waves conducted between 2012 and 2022. Participants reported marijuana use and non-medical opioid use within the previous year, allowing comparisons between states with no legalization, medical-only legalization, and full legalization. 

The reduction in opioid use appeared consistent across ethnic and racial groups and among both men and women. However, the researchers did not find an overall increase in daily marijuana use tied to legalization. 

One exception involved White participants in states that adopted medical-only cannabis laws, where use rose by about 5%. The authors suggest this pattern may reflect persistent racial differences in access to healthcare systems. 

The authors say further research is needed to explore how cannabis legalization may influence other health outcomes, including rates of injection-related infections. 

Businesses like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) will be pleased to see that research is showing that marijuana legalization has wide-ranging beneficial effects that include reducing the daily use of opioids, and therefore potentially saving lives. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — New Study Says No Science Supports Federal Categorization of Marijuana

new scientific review is challenging the foundations of U.S. drug law, arguing that the legal system governing controlled substances no longer reflects modern scientific understanding of risk. 

According to the analysis, drugs such as marijuana are regulated far more harshly than evidence would justify, while substances responsible for widespread harm often face looser oversight or fall outside the system altogether. 

American drug policy has largely been shaped by the Controlled Substances Act, passed in 1970. The law created a series of fixed schedules meant to classify drugs based on their danger and potential for abuse. More than five decades later, researchers say those categories have not kept pace with scientific research or real-world outcomes. The new study concludes that official legal rankings frequently clash with expert evaluations of harm, both in the U.S. and internationally. 

Despite broad public acceptance and legalization at the state level, marijuana has remained in the most restrictive federal category for years. Although President Donald Trump issued an executive order last month instructing the attorney general to accelerate the process of reclassifying cannabis as a Schedule III drug, the change has yet to be finalized. 

To conduct the review, the researchers used a structured evaluation approach known as multi-criteria decision analysis. A group of 17 specialists examined 19 widely used substances, scoring them across 18 measures of harm. These included fatal overdoses, chronic health effects, social disruption, criminal activity, and economic impact. The combined scores produced an overall ranking of harm for each drug. 

One of the study’s notable conclusions is that most substances cause more damage to users themselves than to the wider public. That finding, the authors argue, has important implications for how governments respond. They suggest that policies focused on punishment have failed to reduce drug use and have coincided with a surge in overdose deaths. Instead, they call for expanded harm reduction measures. 

The authors argue that public funds and attention would be better spent on prevention, treatment, and community health rather than incarceration. They describe a policy environment that has remained largely unchanged while patterns of drug use and harm have shifted dramatically. With fentanyl-related deaths rising and alcohol continuing to cause significant health and social damage, they warn that updating drug laws is no longer a theoretical exercise. 

The paper also outlines practical steps tied to its findings. Since fentanyl ranked as the most dangerous substance overall, the researchers point to measures such as wider access to naloxone, drug-checking tools, and supervised consumption sites as evidence-backed responses. They also encourage further studies that consider additional substances, potential therapeutic benefits, vulnerable groups like young people, and different methods of consumption. 

This study is likely to trigger plenty of discussion within the scientific community and in marijuana firms like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) due to the important questions raised about the basis upon which drug laws were formulated. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Florida Could Again Vote on Recreational Marijuana in 2026 Polls

Florida’s debate over recreational cannabis is resurfacing after a failed ballot initiative and renewed public support, setting the stage for a possible return to voters in 2026. 

During the 2024 election cycle, a proposed constitutional amendment to legalize adult-use marijuana earned backing from 56% of voters. While that represented a clear majority, it did not meet the state’s 60% threshold required to amend the constitution. As a result, recreational marijuana remained illegal despite growing public approval. 

New polling suggests attitudes have continued to shift. A survey conducted by the University of North Florida in 2025 found that support for recreational cannabis had climbed to 66%, well above the level needed to pass if voters were asked again. Advocates argue that the earlier defeat reflected concerns about the details of the proposal rather than outright opposition to legalization. 

Governor Ron DeSantis was a vocal critic of the 2024 measure and played a prominent role in the public debate. At the time, he warned that legalization would lead to widespread use and change the character of public spaces, arguing the amendment went far beyond easing penalties. 

The earlier proposal allowed adults to purchase cannabis only from state-approved retailers and did not permit people to grow plants at home. Critics raised alarms about potential advertising aimed at minors, while some supporters felt the plan was too restrictive and favored personal cultivation rights. 

The revised version explicitly allows limited home cultivation, prohibits smoking or vaping cannabis in public areas, and bans any form of marketing directed at children. 

Florida’s GOP chair Joe Gruters, a supporter of legalization, said allowing residents to grow their own marijuana does not undermine the regulated market. He noted that in states where recreational use is legal, personal cultivation tends to exist alongside licensed dispensaries rather than replace them. 

Throughout 2025, sponsors have focused on gathering signatures to move the proposal forward. To qualify for review, they must submit over 880,000 valid signatures by February 1. The campaign had turned in over 675,000 by December 2025. However, roughly 200,000 were rejected because they did not include the full text of the amendment, forcing organizers to continue collecting petitions. 

If the campaign reaches the required number and the Florida Supreme Court signs off on the language, the measure could appear on the 2026 ballot. Voter approval would significantly reshape Florida’s marijuana laws, with implications for consumers, businesses, law enforcement, and the use of public spaces across the state. 

The reform movement, as well as notable industry firms like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be hoping that the outcome of the ballot measure reflects the true will of the state residents. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — E-Commerce is Helping to Normalize Marijuana in the US

Imagine scrolling through an article about a newly released marijuana strain or infused drink, spotting a purchase link, and reserving the product for same-day pickup at a nearby licensed dispensary. That scenario, once unlikely in the cannabis sector, is moving closer to everyday retail reality. 

Consumers at licensed marijuana stores are beginning to see this shift through a new partnership between High Times, a long-running cannabis publication, and Hoodie Analytics, a Chicago-based data and technology company. The collaboration combines editorial content with an online ordering system, enabling readers nationwide to search for legal products, place a reservation, and complete the purchase in person at approved retailers. 

Transactions are still finalized face-to-face, keeping the process aligned with state laws. Even so, the experience closely mirrors how customers shop for many other regulated products online. 

Industry leaders say the effort responds to long-standing frustrations among brands and retailers. Wes Shepherd, CEO of Hoodie Analytics, said many businesses struggle with how consumers discover products. He believes the current system makes it difficult for shoppers to find what they want without relying heavily on discounts or promotions. 

Unlike existing cannabis marketplaces, the High Times platform allows readers to move directly from an article to a product listing through embedded links. Matt Stang, a partner at High Times, said the model benefits retailers by sending qualified customers their way while keeping the shopping process simple. 

Hoodie’s database tracks over 10,000 licensed stores and roughly 9 million individual product listings across the United States. Retailers can also join Hoodie Connect, a no-cost program that offers additional visibility and order referrals through High Times’ audience. 

Not everyone is convinced that e-commerce will benefit all brands equally. Dialed In Gummies President Max Vansluys noted that premium producers can struggle in online environments where lower-priced options dominate. He argued that in-store guidance matters, especially for customers unfamiliar with quality differences. Budtenders, he said, play a critical role in helping shoppers understand why a product costs more. 

Vansluys added that once an order is placed online, the interaction can become purely transactional. Without personal guidance, consumers may default to cheaper options rather than better ones. Still, he acknowledged benefits, particularly for travelers who want to locate familiar products when visiting another state. 

Former LivWell and PharmaCann Executive Chris Mapson echoed that point, noting that cannabis remains highly regional. He said the platform allows readers to quickly see whether a product mentioned in an article is sold in their area. 

Beyond digital commerce, High Times is also investing in print. Through a partnership with Colorado-based Cannapages, the company plans to launch High Times Local, a city-specific magazine featuring coupons, advertising, and local coverage. The first editions are set to appear in Phoenix, Denver, and Colorado Springs, with more cities planned for next year. 

Cannapages’ Matt Hollingshead said physical publications still resonate with readers. Stang added that younger audiences, much like music fans returning to vinyl, are showing renewed interest in tangible media they see as authentic and lasting. 

These developments in cannabis marketing are likely to be of interest to established companies like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) as they could open new avenues to drive sales. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — How the Hemp Industry Could Be Impacted by the Federal Ban on Hemp THC

A surge in hemp-derived THC products that reshaped convenience store shelves and fueled a fast-growing market appears to be heading toward a sharp slowdown. Tucked inside the bill that brought an end to the recent federal shutdown is a clause that would outlaw hemp-derived THC products nationwide. 

That measure, scheduled for November 2026, has sent the $24 billion hemp sector scrambling for answers and time. Supporters and critics agree on one thing; this change would close a loophole created six years ago by the Farm Bill 2018, although some disagree on whether that is a good thing. 

The 2018 bill defined hemp as cannabis containing less than 0.3% delta-9 THC. That wording created a loophole, allowing operators to produce products with enough THC to cause impairment. Businesses found even more room to maneuver by converting CBD, a compound that does not intoxicate, into other forms of THC, such as delta-10 and delta-8. 

Within a few years, vape cartridges, candies, sodas, chips, and baked products using hemp-derived THC had spread nationwide with little oversight. In some states, teenagers could buy them at gas stations. 

In legal cannabis markets, they competed directly with regulated and taxed products. In prohibition states, they skirted bans on recreational cannabis. Several states, including Indiana, later reported more calls to poison control centers involving young children. With federal action stalled until now, states moved on their own. Some restricted sales, others banned items outright. 

Influential Senator Mitch McConnell, who was instrumental in shaping the 2018 hemp legislation, added the federal ban to the recent measure that ended the 43-day shutdown

Parts of the legal cannabis industry have welcomed the development, arguing that the hemp sector has been allowed to dodge taxes and safety rules. Anti-cannabis groups have also praised the move. 

However, hemp producers hope that Congress will use the one-year window to craft national standards instead of shutting the industry down. They argue that stricter age limits, rules against synthetic cannabinoids, and bans on child-focused marketing could address concerns without wiping out the entire industry. 

Industry representatives warn the ban could put over 300,000 jobs at risk and cost states an estimated $1.5 billion in tax revenue. Some business owners say their companies would not survive. 

Several lawmakers are now pushing for a middle path. Senator Rand Paul attempted to remove the ban from the funding bill, though the effort failed. Minnesota’s Senators, Tina Smith and Amy Klobuchar, have called for hearings and suggested that states be allowed to create their own regulations. 

The marijuana industry, including entities like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be following the discussions in the wake of this federal hemp-sourced THC ban to see how it reshapes the hemp and cannabis industries. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Michigan Files Defense in Case Challenging its New Marijuana Taxes

The state of Michigan is standing by its newly approved wholesale cannabis tax, stating that the measure complies with the state constitution and does not violate the 2018 ballot initiative that legalized recreational marijuana. 

The legal defense comes in response to a lawsuit filed by the Michigan Cannabis Industry Association, which is challenging a 24% wholesale tax on cannabis slated to take effect at the start of 2026. The tax would be added to the existing excise tax already applied to retail sales under the voter-approved legalization measure. 

Industry representatives argue that the new levy is unconstitutional as it was not passed with the supermajority vote required to alter a voter-initiated measure. The tax cleared the House by a 78-21 vote and the Senate by 19-17, both falling short of the three-fourths margin required by the state constitution for such changes. 

A separate lawsuit filed by Holistic Research Inc., a licensed marijuana cultivator based in Harrison Township, is also seeking to block the tax while litigation proceeds temporarily. The company has requested a preliminary injunction that would prevent the state from implementing the tax on January 1. 

In its court filings, the state maintains that the new tax is a separate measure and does not amend the 2018 legalization law. State attorneys argue that lawmakers created a distinct revenue mechanism intended to work alongside Michigan’s broader marijuana regulatory framework, which is governed by multiple overlapping statutes. 

According to the state’s brief, the goal of the new tax is to generate additional funding for road improvements, not to alter or regulate the marijuana market itself. Officials say the tax will contribute roughly $420 million to a $2 billion infrastructure plan designed to improve state and local roads. 

Critics, however, warn that the added cost will likely raise prices for consumers, push some businesses to the brink, and encourage more buyers to return to the illegal market, undermining the state’s goal of supporting a regulated industry. 

The state also rejected claims that lawmakers improperly changed the intent of an unrelated bill to push the tax through. 

Attorneys for the Michigan Cannabis Industry Association have not yet formally responded to the state’s arguments, but a spokesperson said the group intends to press for a temporary injunction. Judge Sima Patel of the Court of Claims is scheduled to consider that request on November 25 in Detroit. 

The wider cannabis industry, including companies like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) will be hoping that a workable compromise is attained to increase tax revenue without unduly burdening marijuana companies in Michigan. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — 39 State AGs Ask Congress to Ban Hemp-Sourced THC Products

A coalition of 39 attorneys general from 37 U.S. states and two territories is urging Congress to take immediate action against the growing sale of hemp-derived THC products. In a letter sent on October 24 to leaders of key Senate and House committees, the group called for a revision of federal law to close what they describe as a loophole in the Farm Bill 2018 that has allowed synthetic, psychoactive products to proliferate nationwide. 

The bipartisan letter, coordinated by Arkansas AG Tim Griffin along with Indiana’s Todd Rokita, Minnesota’s Keith Ellison, and Connecticut’s William Tong, warns that hemp-derived THC compounds, often stronger than traditional cannabis, are being sold with little oversight. They argue that the substances, including THC-O, delta-8, and delta-10, are being sold openly in gas stations, convenience stores, and online, often packaged in ways that attract children. 

Their letter also argues that companies are exploiting the original intent of the Farm Bill, which legalized hemp for industrial uses such as fiber and grain. The attorneys general contend that manufacturers have twisted the bill’s language to justify producing synthetic THC compounds that are often more potent than cannabis, classified as a controlled substance. Without clear federal action, they warn, the market for these unregulated products will continue to expand, posing risks to public health and complicating law enforcement efforts. 

The AGs are asking lawmakers to revise the definition of hemp either through the next federal spending bill or the upcoming farm bill reauthorization, making clear that intoxicating hemp products should be considered illegal. 

Senator Mitch McConnell, who championed hemp legalization in 2018, said earlier this year that Congress never intended to allow unregulated intoxicating hemp products. A Senate committee briefly included a proposal to ban such substances in a spending bill, but the measure was later removed after objections from Senator Rand Paul, who argued for regulation rather than prohibition. 

State governments have taken steps to restrict or ban synthetic THC products, but the AGs warn that inconsistent state laws cannot address a nationwide issue. “Only Congress can fix this,” they wrote, emphasizing the need for a clear, unified federal approach to restore the original purpose of the Farm Bill and protect public health. 

The group’s letter reflects growing bipartisan concern over an industry that operates with minimal oversight and few safety standards. Without federal action, they caution, the market for these products will continue to expand, putting children, consumers, and law enforcement at risk. 

Marijuana firms, including those based outside the U.S. like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be watching whether Congress takes up this matter and what decisions are made regarding intoxicants made from hemp. 

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer

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