Intelligence

The landscape surrounding Section 280E of the Internal Revenue Code continues to evolve with President Trump's Executive Order on medical marijuana rescheduling, advancing litigation in New Mexico Top Organics v. Commissioner, and shifting regulatory signals. Cannabis taxpayers face critical decisions about taking "non-280E" positions on their tax returns while the IRS maintains its enforcement stance and the U.S. Tax Court case addressing common arguments remains pending.

The House has passed a short-term funding bill postponing the federal ban on hemp-derived THC products from November 12th to December 11th. With comprehensive legislation unlikely before the new deadline and competing interests from cannabis sellers, alcohol producers, and state regulators creating policy gridlock, the future of intoxicating hemp products remains uncertain as midterm elections approach.

For years, cannabis companies have been unable to access U.S. bankruptcy courts due to the federal classification of marijuana. Federal courts have consistently dismissed Chapter 11 cases filed by cannabis operators...

Welcome back to The Week in Weed, your Friday look at what’s happening in the world of legalized marijuana. This week, the DEA released the rescheduling hearing transcript, which runs to over 2,500 pages.

Cannabis rescheduling has fundamentally altered the regulatory landscape for California operators, creating hidden risks in contracts drafted before April 2026. Supply agreements, licensing deals, and investment documents built around Schedule I assumptions may now contain critical gaps regarding DEA registration requirements, medical versus adult-use distinctions, and tax treatment under I.R.C. 280E.

Federal hemp regulations face potential delays as the Senate votes to extend the ban deadline, while new bipartisan legislation proposes treating hemp beverages like alcohol. Meanwhile, Rhode Island reopens its cannabis retail licensing process and New York authorizes microbusinesses to sell at farmers' markets.