September 18, 2025
Built by a former cannabis regulator, Policy, Decoded is your high-signal daily briefing for operators, investors, and policymakers navigating the collision of law, regulation, and business.
Todayās edition is brought to you by The Hybrid podcast, hosted by former cannabis regulators Shawn Collins and Erik Gundersen. Listen or watch wherever you get your podcastsā¦and donāt forget to like and subscribe!
Trumpās drug czar nominee leaned on the familiar āmore researchā refrain while avoiding firm commitments on rescheduling. Ohio exposed nearly a million patient records in a major data breach. Alabamaās hearings showed what four years of dysfunction looks like when patients still canāt access medicine. And on Capitol Hill, interest in reform conveniently spiked only after the president started talking about it.
šļø Drug czar confirmation theater
š Patient records exposed in Ohio
šļø Alabama hearings highlight dysfunction
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Start here ā the dayās most important development, decoded for impact.
š What Happened: Trump's drug czar nominee Sara Carter told senators the administration is keeping "all options" on the table for marijuana rescheduling while calling cannabis reform a "bipartisan issue" during her confirmation hearing Wednesday. When pressed by Sen. Cory Booker about advising Trump on moving cannabis from Schedule 1 to Schedule 3, Carter said the administration will "continue to work extensively with research and data" and "explore all options." Carter noted she's already met with VA Secretary Doug Collins on the need for "continued research and data" to assess cannabis policy, emphasizing that approach as "vitally important." This comes as the rescheduling process remains frozen in administrative purgery, with DEA hearings cancelled since January after allegations the agency engaged in improper communications with anti-rescheduling groups. The Biden administration initiated this marathon bureaucratic exercise in October 2022, with HHS recommending Schedule 3 placement in August 2023, only to see DEA publish a proposed rule in May 2024 that immediately became mired in procedural warfare and appeals.
š” Why It Matters: Carter's careful diplomatic language reveals an administration still genuinely undecided on rescheduling despite Trump's campaign trail endorsement and recent "within weeks" timeline promises. The process that began with Biden's directive has become a regulatory nightmare spanning three years, moving from HHS scientific evaluation through DEA's contested rulemaking to a complete hearing suspension pending appeals over alleged agency bias. The January hearing cancellation followed accusations that DEA engaged in prohibited ex parte communications with Smart Approaches to Marijuana and other anti-rescheduling entities, while simultaneously arguing against the medical value of cannabis despite being designated as the rule's "proponent." Carter's emphasis on Veterans Affairs coordination signals potential focus on medical applications rather than broader reform, particularly given congressional opposition that includes House appropriations language specifically blocking DOJ rescheduling funds. The "all options" framing keeps the door open to maintaining Schedule 1 status or pursuing alternative classifications, making this less than the rescheduling certainty industry observers expected.
š§ THC Group Take: Welcome to the greatest hits collection of drug czar confirmation theater. Carter delivered the standard "we need more research" performance that every ONDCP nominee has used since the 1980s, complete with solemn promises to follow the data while carefully avoiding any actual policy commitments. This playbook is older than most cannabis companies: say enough to avoid controversy during confirmation hearings, then disappear into the bureaucratic wilderness while focusing on fentanyl, cartels, and whatever crisis generates better headlines. The "bipartisan issue" framing is particularly rich given that cannabis policy has been bipartisan for exactly as long as it takes nominees to get confirmed. Carter's emphasis on VA research is the perfect Washington solution because it sounds medical and responsible while guaranteeing nothing will happen for years. The frozen DEA process provides ideal cover for an administration that clearly wants cannabis policy to remain someone else's problem while they tackle bigger political priorities.
Fast-moving headlines, flagged for what matters.
Rep. Ilhan Omar says there's been "more discussion among lawmakers about cannabis reform recently" as Trump weighs rescheduling, calling his hints at the policy "kind of a positive step." The Congressional Cannabis Caucus co-chair notes banking reform remains "the one thing" entrepreneurs complain about during her travels across the country. What's painfully sad is that cannabis interests have been walking Capitol Hill corridors for years, spending millions on lobbying efforts that apparently went unnoticed until the president started making noise about rescheduling. Meanwhile, House Republicans just passed spending bills to block DOJ from using funds for rescheduling while scheduling hearings about Chinese marijuana criminal networks because nothing says serious policy consideration like contradictory legislative theater. The sudden Congressional "awakening" reveals how presidential positioning drives legislative attention more than years of industry advocacy ever could. (Marijuana Moment)
A cybersecurity researcher discovered that Ohio Medical Card/Ohio Medical Alliance left nearly one million patient records unprotected online, including medical diagnoses, social security numbers, and cannabis card applications that could enable insurance discrimination or workplace blackmail. The breach exposed sensitive health information from patients seeking medical cannabis cards, with federal class action lawsuits now filed against the company while Ohio's State Medical Board investigates. Cannabis businesses collecting personal health data must invest in proper cybersecurity infrastructure instead of treating data protection as an afterthought to revenue generation. As the researcher bluntly noted, these companies were "too busy selling weed and not focused enough on data privacy and security," turning patient medical information into a massive liability. (WOSU)
Alabama's medical cannabis program remains completely non-operational four years after legalization, with administrative law hearings finally underway to resolve endless licensing disputes that have left patients without access and growers sitting on unsellable crops. The Alabama Cannabis Coalition says dispensary license appeals have been running since August 29th with completion predicted by October, potentially opening dispensaries by year-end, though advocates warn to "take that date with a grain of salt." The state still lacks basic program infrastructure including physician education programs, approved doctor lists, and a patient card vendor system. Alabama's regulatory dysfunction has created the perfect storm where licensed businesses lose money growing products for patients who can't legally access them through a system that doesn't actually exist yet. (WHNT)
šļø Lame Duck GOP Senator Calls for Congress to Regulate Marijuana While Exploring PTSD Benefits
Sen. Thom Tillis told the Senate Judiciary Committee that Congress needs to "step up" and explore a regulatory framework for marijuana, including pathways to study cannabis "efficacy" for PTSD and pain treatment during Trump's drug czar confirmation hearing Wednesday. The North Carolina Republican, who isn't seeking reelection, said lawmakers aren't "doing their job" by ignoring that legalization has already happened in most states and warned that THC potency concerns will worsen "unless we get serious about regulatory regimens." Tillis specifically endorsed exploiting cannabis benefits "particularly for the treatment of persons with PTSD" while calling for federal action during his "remaining time here." The comments carry limited weight given that Tillis has become persona non grata with the Trump administration after criticizing the president's approach to various issues, making him exactly the kind of establishment Republican voice this White House tends to ignore. His lame duck status means these regulatory calls are more legacy positioning than actionable policy proposals for an administration focused on other priorities. (Marijuana Moment)
Cannabis retailers are adopting basket analysis from traditional retail to understand consumer purchasing patterns, with data showing 67% of flower buyers make single-item purchases while edibles consumers often add beverages or vapes to their baskets. The strategy helps operators optimize store layouts, create bundled promotions, and identify merchandising gaps like pre-rolls being treated as standalone purchases requiring different marketing approaches. Average basket sizes vary dramatically by market maturity, with newer states like New York and New Jersey seeing larger baskets due to limited product categories and higher prices, while mature markets see smaller, more frequent purchases. Cannabis producers are using this data to inform product development and secure retail placement by demonstrating how their products boost overall basket values in competitive markets. (MJBizDaily)
Aurora Cannabis announced a five-year investment plan to upgrade its EU-GMP manufacturing facility in Leuna, Germany, including additional grow rooms, new irrigation systems, and transitioning to hang dry processes to increase flower capacity and quality. The Canadian company operates one of only three licensed cultivation facilities in Germany and plans to adopt manufacturing practices from its home facilities while expanding cultivation of additional genetics varieties. As we've previously noted, GMP standards represent the gold standard for international cannabis operations, creating both barriers and opportunities for market entry. U.S. companies anticipating federal rescheduling or interstate commerce should view international players like Aurora as either the competitive threat that's already building scale and quality systems, or the strategic opportunity for partnerships that provide immediate access to established global supply chains. (StreetInsider)
From the hearing room to the comment section ā weāre watching it all.
šŗ The Hemp Beverage Alliance just formalized sales tracking through Vermont Information Processing, revealing 77% average monthly growth from January 2024 through August 2025 and a 95% jump in distribution points. Minnesota continues to dominate market share as an early adopter with sensible regulation, while the Carolinas and Florida show notable increases as more states enter the market. (Wine Industry Advisor)
šļø Cannabis professionals are trading convention centers for country clubs at events like the TeeHC Open, where dispensary owners discuss multi-state operations between putts and raise charity funds over post-round drinks in New England's traditional bastions of old money. Cannabis Creative Group and Joint Venture & Co. deserve credit for recognizing that legitimacy comes from consistent presence in unexpected places rather than preaching to the converted at another fluorescent-lit trade show. Theyāre also friends of Policy, Decoded, soā¦thereās that. (High Times)
š° Disney World is hosting its first non-alcoholic pairing event featuring AplĆ³s beverages infused with botanicals, hemp, adaptogens, and nootropics at Enzo's Hideaway, signaling how hemp-adjacent products are infiltrating even the most family-friendly venues. We're apparently just a few regulatory changes away from Mickey Mouse hosting a THC seltzer tasting in the Magic Kingdom, though something tells us "The Happiest Place on Earth" might draw the line at character-inspired edibles. (World of Walt)
š New Jersey State Police seized $48 million worth of cannabis products during a routine commercial vehicle inspection on I-78, including over 7,600 pounds of hydroponic marijuana, 44,000 THC vape cartridges, and thousands of edible packages in what appears to be a massive interstate trafficking operation. The bust highlights how legal state markets create lucrative arbitrage opportunities for illicit operators willing to transport products across state lines where cannabis remains illegal or heavily regulated. (TAPinto)
š Barcelona's cannabis clubs are facing an identity crisis as tourist money transforms community-oriented associations into entertainment venues with DJs and inflated membership fees, while locals get priced out of their own neighborhoods and their own clubs. The city's crackdown on clubs coincides with gentrification pressures, creating a vicious cycle where tourist-focused operations attract scrutiny that ultimately hurts the grassroots community clubs that avoid corruption but lack resources to survive regulatory warfare. (High Times)
š Cannabis dispensaries are embracing autumn with pumpkin spice-infused beverages packing 100mg of THC and seasonal peanut butter cups, while budtenders recommend strains high in humulene and myrcene terpenes for their earthy, musky aromas that pair perfectly with falling leaves and slow-cooking stews. The seasonal cannabis trend shows how the industry has matured beyond basic flower sales into lifestyle products that complement everything from changing weather to holiday flavors. (The Inlander)