U.S. cannabis sector watches federal rescheduling hearing and state legislative moves

The Administrative Law Judge hearing on federal cannabis rescheduling featured the first medical‑smoking product sale in Georgia, highlighted by a veteran buyer, and a discussion of artificial‑intelligence tools by Flowhub, which launched an open Model Context Protocol allowing operators to connect retail data to AI models such as OpenAI and Google.

Testimony from prohibition‑aligned group Smart Approaches to Marijuana included Harvard professor Dr. Bertha Madras, who warned of addiction and health risks but conceded that hemp meets the Schedule III definition. The hearing underscored the uncertainty of any federal schedule change, with a poll showing consumers doubt the Trump administration will complete rescheduling this year.

State actions show varied approaches: Virginia lawmakers are wrestling with language that may have unintentionally repealed certain marijuana penalties, creating legal ambiguity; North Carolina’s governor and House speaker remain split on legalization, leaving an estimated $3 billion illicit market untaxed; Wyoming’s attorney general announced the state will not automatically adopt any future federal rescheduling. Industry operators are proactively raising loan draws and pursuing consolidation as they prepare for possible regulatory shifts.