Cannabis Round-Up: Rescheduling Faces New Roadblocks, SAFER Banking Act Gets Another Look

Road to cannabis rescheduling hits another speed bump

Discussions around cannabis rescheduling continued in February, involving several key points. Since proceedings to reschedule cannabis stayed in January after advocates raised concerns of potential bias within the Drug Enforcement Administration (DEA), the path to rescheduling has become increasingly convoluted.

First, on February 7, DEA administrative law judge John J. Mulrooney granted a withdrawal request from Erin Gorman Kirk, who is Connecticut’s Office of the Cannabis Ombudsman, and The Doc App, which is doing business as My Florida Green.

On why she requested the withdrawal, Kirk told Cannabis Business Times: “With (Connecticut’s) legislative session underway, and the prospect of a long, drawn-out DEA Rescheduling process, I felt our patients were better served by working with our esteemed legislators to improve the Connecticut Medical Cannabis Program and help our patients get back to the health they enjoyed before the adult-use marketplace began.

“This Office was created so we do not leave patients behind, and that’s where I continue to focus my efforts. I remain engaged with the broader community of patient advocates working to de-stigmatize our medication and provide healthier alternatives to wellness.”

Judge Mulrooney also granted a motion for relief on February 11 for Ellen Brown, an appointee from the Massachusetts Cannabis Advisory Board. Judge Mulrooney had ruled that Brown lacked sufficient standing under the Administrative Procedure Act to proceed as a standalone participant and gave her until March 14 to consolidate with another designated participant.

Later, on February 17, Doctors for Drug Policy Reform (D4DPR) filed a brief requesting new witness selection for the rescheduling hearings, citing the violation of bedrock administrative law principles by the DEA’s former administrator, Anne Milgram, who limited the hearing to 25 participants and rejected D4DPR’s request to participate.

Meanwhile, US President Donald Trump’s picks to lead key federal agencies pose a new threat to a once-promising initiative. Chairman of the Office of Management and Budget Russel Vought has a track record of opposition to cannabis reform, calling it a gateway drug in 2022 during an appearance on C-SPAN.

Also, newly appointed Chairman of the Department of Health and Human Services (HHS) Robert F. Kennedy told Senate members he would refer to the DEA on the matter during his two-day confirmation hearing; however, he later expressed concern about high-potency strains of cannabis and said he wants to conduct further studies on its effects. He has also moved to rescind public participation from HHS decision-making.

Pennsylvania governor proposes legal cannabis market in state budget

Pennsylvania Governor Josh Shapiro proposed legalizing recreational cannabis in his state as he presented his state budget to legislators on February 5. “Pennsylvanians who want to buy cannabis are just driving across the border to one of our neighbors,” he said, adding that a legal recreational market would add US$1.3 billion in tax revenue over five years.

Regulation would fall to the state Department of Agriculture and the Department of Health under the Governor’s plan.

Meanwhile, in New Hampshire, the state House of Representatives passed HB 75 on February 21, which would legalize adult cannabis use and possession but does not include provisions to support taxation, regulation or a retail market. Market watchers do not expect the bill to pass through the state legislature, citing Governor Kelly Ayotte’s hardline on drug enforcement. During her campaign, she flatly said she would not support cannabis reform in the state if elected.

Senate committee re-examines the SAFER Banking Act

The US Senate Committee on Banking, Housing and Urban Affairs held a hearing on February 5 on debanking practices by regulators and banks. While the hearing was largely anticipated to center around the cryptocurrency industry, Ranking Member Elizabeth Warren, D-Mass., noted that among the 11,955 complaints received by the Consumer Financial Protection Bureau, some were related to debanking efforts against legal cannabis businesses.

Aaron Klein, a senior fellow in economics at the Brookings Institution who was called to testify, said a cannabis banking bill such as the SAFER Banking Act would help but would require amendments to ease the burdensome and costly requirements for filing Suspicious Activity Reports. “I fear the bill’s impact would likely underwhelm what its proponents have argued,” he wrote in a testimony.

Aurora, Canopy Growth report earnings

Aurora Cannabis (NASDAQ:ACB, TSX:ACB) reported its financial results on February 5 for its fiscal Q3 2025 ended December 31, 2024. The company’s net revenue for the period totaled C$88.2 million, an increase of 37 percent year-over-year. Net income for the three months was C$31.34 million, a marked improvement from the C$18.1 million in losses recorded during the same period in 2023.

The next day, the company announced a strategic supply agreement with SNDL (NASADQ:SNDL), which would see SNDL provide Aurora with cannabis flower products from its indoor facility in Atholville, New Brunswick.

Canopy Growth (NASDAQ:CGC, TSX:WEED) reported its Q3 2025 results on February 7, revealing a 16 percent annual increase in net revenue for medical cannabis sales in Canada and 14 percent net revenue growth year-over-year in the international market.

Its overall net revenue for the period was C$74.8 million. This was 5 percent lower compared to Q3 2024, which the company attributed to the divestiture of businesses before the quarter; excluding their revenue, net revenue was up 8 percent year-over-year.

While the company’s net loss of C$121.9 million was a marked improvement compared to a loss of C$216.8 million in the prior year, analysts expected greater improvement. Shareholders sent the company’s stock price down nearly 5 percent from C$3.04 to C$2.89 by the end of the day.

At the end of the month, on February 28, Canopy Growth established an at-the-market-program that will allow it to issue and sell up to US$200 million in shares to raise additional capital that may be used for strategic acquisitions or to reduce debt, potentially including a US$100 million prepayment that would extend its loan maturity to September 2027.