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U.S. authorities are reportedly investigating Chinese router manufacturer TP-Link as a possible threat to national security after multiple cyberattacks have been linked to the <a href="https://www.benzinga.com/content/42521121/tp-link-archer-gxe75-with-wtfast-integration-now-available-on-amazon-in-the-usa">company's popular routers.</a>
What To Know: TP-Link is the top seller of routers on Amazon and holds about 65% of the U.S. market share of commercial and residential routers, speaking to the widespread use of the manufacturer's equipment, according to a Wall Street Journal <a href="https://www.wsj.com/politics/national-security/us-ban-china-router-tp-link-systems-7d7507e6?mod=hp_lead_pos1">report</a>. 
According to the Wall Street Journal's sources, three U.S. government departments — Commerce, Defense and Justice — opened probes into the company.&nbsp;&nbsp;
An office of the Department of Commerce subpoenaed TP-Link and the Department of Justice is investigating whether the company is violating a law against attempting a monopoly by selling products for less than cost, according to a person familiar with the matter. Earlier this year, the Department of Defence opened an investigation into national-security vulnerabilities in Chinese routers, according to people familiar with the matter, per the Wall Street Journal. 
Authorities could ban TP-Link routers in the U.S. as soon as next year, according to people familiar with the matter, the Journal said. 
Benzinga contacted Amazon and TP-Link to comment on the report and has not received a response at the time of publication.&nbsp;
Read Next: <a href="https://www.benzinga.com/general/market-summary/24/12/42535400/americans-bought-less-but-paid-more-says-peter-schiff-experts-digest-november-retail-sales-data">&#8216;Americans Bought Less But Paid More,&#8217; Says Peter Schiff: Experts Digest November Retail Sales Data</a>
TP-Link&#8217;s Aginet brand<a href="https://www.tp-link.com/us/press/news/20443/"> gained </a>significant traction with over 300 ISPs including AT&amp;T, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), Comcast Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) and Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) choosing TP-Link as a supplier.&nbsp;
TP-Link routers are also used by the Department of Defense, National Aeronautics and Space Administration, Drug Enforcement Agency and other federal agencies, highlighting the potential risk of national-security vulnerabilities related to the Chinese routers. 
Why It Matters: If TP-Link routers are banned, it would mark the largest ban on Chinese technology in the U.S. since the Trump administration in 2019 prohibited equipment from Huawei Technologies. The Biden administration initiated probes into TP-Link, but any actions to be taken against the company will likely fall to the incoming Trump administration.&nbsp;
Read Next:&nbsp;
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Trump Administration Could Ban Amazon's Top-Selling Routers Linked To Chinese Cyberattacks: Report

The long-awaited hearing to discuss <a href="https://www.benzinga.com/topic/cannabis-rescheduling">cannabis rescheduling</a> will begin on January 21, 2025, marking a significant moment in the ongoing debate over cannabis regulation. As Business of Cannabis <a href="https://businessofcannabis.com/cannabis-rescheduling-hearing-set-to-begin-on-january-21-for-6-weeks-as-frustrations-over-process-continue-to-build/">reported</a>, the six-week hearing will continue until March 6, 2025, but its outcome remains uncertain due to political and procedural challenges.
With key positions in the new administration still unconfirmed, many questions remain about how much influence the incoming cabinet will have on the hearings. This uncertainty has raised concerns over the DEA&#8217;s impartiality and the fairness of the process.
<h3 class="wp-block-heading">Legal Challenges From Health Coalitions And Advocates</h3>
In a move that has added to the controversy, the Doctors for Drug Policy Reform has filed a federal court petition challenging the DEA's exclusion from the hearings. According to Businnes of Cannabis, the group argues that their medical expertise is essential for evaluating the implications of cannabis rescheduling, particularly regarding medical marijuana prescriptions.
Additionally, weeks ago, the agency <a href="https://www.benzinga.com/markets/cannabis/24/11/42169153/dea-judge-blocks-researchers-motion-in-cannabis-rescheduling-case">denied MedPharm's bid to join the December 2 hearing</a>. MedPharm, a DEA-registered research firm, criticized the exclusion of marijuana researchers and the inclusion of prohibitionist organizations such as Smart Approaches to Marijuana (SAM).&nbsp;
SAM has been also at the center of the controversy. On November 28, attorney Matt Zorn <a href="https://www.benzinga.com/24/12/42274698/dea-sued-for-allegedly-hiding-emails-with-anti-marijuana-group">sued the DEA</a> for failing to release records related to its communications with the organization. The DEA dismissed them as "gossip," arguing that there was no illegal contact, despite SAM President Kevin Sabet admitting to discussing the details of the rescheduling with DEA insiders. <a href="https://www.benzinga.com/government/regulations/24/11/42198793/prohibitionist-group-denies-collusion-allegations-ahead-of-dea-cannabis-rescheduling-hearing">SAM also denied</a> that the conversations had anything to do with the rescheduling procedure.
Earlier in November, the Veterans Action Council, a cannabis advocacy organization for military veterans, <a href="https://www.benzinga.com/news/legal/24/11/42068859/veterans-group-challenges-dea-for-seat-at-cannabis-debate-table">filed a petition</a> challenging its exclusion from the DEA&#8217;s participant list, published in October. The petiton followed the withdrawal of some designated participants and growing scrutiny over the agency's handling of the rescheduling process.
Several organizations have pulled out of the hearings since the initial announcement. The American College of Occupational and Environmental Medicine missed important procedural deadlines, while an oncologist representing the American Academy of Hospice and Palliative Medicine opted not to participate. Additionally, five remaining participants are represented by David Evans, a prominent anti-cannabis advocate, highlighting the polarized nature of the upcoming hearings.
<h3 class="wp-block-heading">Scheduled Presentations And Participants</h3>
The DEA has outlined a strict schedule for the hearings, featuring presentations from various stakeholders, including industry groups, law enforcement and medical professionals. Notable participants include the National Cannabis Industry Association and Smart Approaches to Marijuana, among others. The schedule includes:
<ul>
<li>January 21: Presentation by the government</li>
<li>January 22-23: Presentations from Hemp for Victory, Cannabis Bioscience International Holdings and other groups</li>
<li>January 28-30: Presentations from the Connecticut Office of the Cannabis Ombudsman, National Cannabis Industry Association and additional participants</li>
<li>February 4-6: Presentations from The Commonwealth Project, Veterans Initiative 22 and others</li>
<li>February 18-20: Presentations from the Tennessee Bureau of Investigation, International Association of Chiefs of Police and more</li>
<li>February 25-27: Presentations from Smart Approaches to Marijuana, Community Anti-Drug Coalitions of America and other stakeholders</li>
<li>March 4-6: Presentations from Dr. Kenneth Finn, National Drug and Alcohol Screening Association and others.</li>
</ul>
<h3 class="wp-block-heading">Public Comments Excluded From the Process</h3>
Although more than <a href="http://v">43,000 public comments were submitted</a> during the 60-day comment period, the DEA has ruled that these comments will not be accepted as evidence, citing the limitations of the Administrative Procedure Act. This decision has generated criticism from cannabis advocates and industry leaders.
<h3 class="wp-block-heading">High Stakes For The Industry</h3>
Reclassifying marijuana could provide <a href="https://www.benzinga.com/markets/cannabis/24/05/38901900/what-schedule-iii-really-means-for-cannabis-industry-and-consumers-congressional-experts-explain">significant advantages to the U.S. cannabis industry</a>. It would ease research and financial restrictions, improve access to banking and reduce legal challenges, enabling businesses to operate more freely. A Schedule III classification could also lead to broader insurance coverage and more federal funding for cannabis research, potentially fostering growth, investment and innovation. Advocates argue that rescheduling would enhance regulation and increase access to medical cannabis, but given the complexities of the process, the final decision may still be months away, with lasting impacts on the industry.
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DEA's Cannabis Rescheduling Hearing Set To Begin In January 2025 As Controversy Mounts

Truist Securities analyst Michael Lewis maintains Easterly Government Props (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEA#NYSE">DEA</a>) with a Hold and lowers the price target from $14 to $13.

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Truist Securities Maintains Hold on Easterly Government Props, Lowers Price Target to $13

President-elect Donald Trump said Wednesday that he himself pulled out his initial pick to lead the Drug Enforcement Agency (DEA) despite the fact that Florida Sheriff Chad Chronister <a href="https://www.benzinga.com/news/legal/24/12/42306303/trumps-dea-pick-withdraws-from-consideration-will-keep-job-as-florida-sheriff">announced the day before</a> that he was withdrawing from consideration.
Nevertheless, Trump took to the airwaves insisting that Chronister did not pull out, but rather it was the other way around.
<h2 class="wp-block-heading">Then He Shot The Messenger</h2>
"The Wall Street Journal is becoming more and more obnoxious and unreadable. Today's main headline is: ‘Trump's DEA Pick Pulls Out In Latest Setback.' With all that's happening in the World, this is their Number One story of the day," Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/113595507414156033">wrote</a> on Truth Social.
"Besides, he didn't pull out, I pulled him out, because I did not like what he said to my pastors and other supporters. But, more importantly, what's my &#8216;latest&#8217; setback???'"
<h2 class="wp-block-heading">Trump&#8217;s Pastors?</h2>
Trump was referring to an incident from back in the dark days of the pandemic when Chronister announced the arrest of a Tampa church pastor for having conducted a service during the height of social distancing. Though the charges were ultimately dropped, Florida's right-wing anti-maskers went on a rampage against Chronister at the time.
When Chronister said no to the Trump DEA job offer, he didn't mention the conservative backlash that was bubbling up mostly in Florida, although some out-of-staters jumped in to give him hell. "This sheriff ordered the arrest of a pastor for holding services during the COVID panic. Glad to see him withdraw from consideration," Rep. Thomas Massie (R-Ky) <a href="https://x.com/RepThomasMassie/status/1864073791283826739">posted</a> on X. "Next time politicians lose their ever-lovin minds, he can redeem himself by following the Constitution.&#8221;
<h2 class="wp-block-heading">Did Someone Get His Feelings Hurt?</h2>
When he initially picked Chronister to head up the DEA, Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/113574561799756610">sang his praises</a>, saying the sheriff would succeed in stopping "the flow of Fentanyl, and other Illegal Drugs, across the Southern Border, and SAVE LIVES."
Is Trump feeling jilted? That could be, but we'll never know. The President-elect has valiantly chosen to move on. As for who will lead the DEA, we'll just have to wait. There surely are hundreds waiting in the wings (and the halls of Fox News), in the hope of getting the tweet that'll change his/her life.
Now Read:
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<li><a href="https://www.benzinga.com/24/12/42349036/us-taxpayer-funds-global-drug-war-leaving-evidence-based-health-responses-behind">$13-Billion Drug War Funded By U.S. Taxpayers Fuels Violence In Developing Countries: New Report</a></li>
</ul>

Trump's DEA Drama: He Didn't Quit, I Fired Him — A Tale Of Pastors, Pandemic And Hurt Feelings

Since 2015, U.S. taxpayers have allocated nearly $13 billion to international &#8220;counternarcotics&#8221; activities, including law enforcement, military support and punitive drug policies.&nbsp;
According to a report by Harm Reduction International (HRI) and the Drug Policy Alliance (DPA), this spending has prioritized drug control over evidence-based health responses, often leading to severe human rights abuses and undermining global development goals.
<h3 class="wp-block-heading">U.S. Taxpayer Funding Global Drug War</h3>
The U.S. government's role in <a href="https://www.benzinga.com/markets/cannabis/23/04/32053616/Waiting-to-Inhale">funding the global war on drugs</a> is unparalleled, spanning multiple government agencies, <a href="https://www.benzinga.com/markets/cannabis/23/10/35350765/deas-50-year-1-trillion-drug-war-why-were-there-250k-marijuana-arrests-in-2022">including the DEA</a>, the Department of State and USAID. While $13 billion was channeled into international narcotics control programs over the past decade, this funding exceeds U.S. foreign aid for essential services like primary education, water supply, sanitation and women's rights combined. 
HRI and DPA's <a href="https://drugpolicy.org/wp-content/uploads/2024/11/A-World-of-Harm-Report-FINAL-11_25.pdf">report</a>, titled "A World of Harm", shows how this prioritization of punitive measures over health-based responses has resulted in rising human rights violations, including forced rehabilitation programs, displacement and criminalization.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">U.S. assistance has supported and expanded destructive and deadly anti-drug responses around the world. Our new report shows how U.S. taxpayers fund the global war on drugs over evidence-based health responses: <a href="https://t.co/wb8ykE5AdE">https://t.co/wb8ykE5AdE</a> <a href="https://t.co/oEM5kQQ5lj">pic.twitter.com/oEM5kQQ5lj</a>
&mdash; Harm Reduction International (@HRInews) <a href="https://twitter.com/HRInews/status/1864339450567839864?ref_src=twsrc%5Etfw">December 4, 2024</a></blockquote>
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<li>Get Benzinga&#8217;s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter <a href="https://newsletteremail.benzinga.com/subscribe">here</a>. If you&#8217;re serious about the business, you can&#8217;t afford to miss out.</li>
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Notably, the report highlights three key countries— the Philippines, Colombia and Mexico— where U.S. taxpayer funds have directly supported controversial narcotics control programs, often with devastating consequences.
<h3 class="wp-block-heading">Coerced Rehabilitation Backed By U.S. Funds</h3>
In the Philippines, the U.S. has funded &#8220;forced rehabilitation&#8221; programs, despite <a href="https://filtermag.org/coerced-drug-treatment-harms/">growing evidence</a> that such approaches harm individuals more than they help. As the country's war on drugs escalated under former President Duterte, U.S. funding supported the government&#8217;s crackdown, contributing to extrajudicial killings and human rights abuses.
&#8220;There are no voluntary community-based programs,&#8221; stated civil society advocates in the report, adding that most individuals in these programs are coerced.
<h3 class="wp-block-heading">U.S. Corporations Profit From Toxic Fumigation</h3>
In Colombia, U.S. funds helped bankroll aerial fumigation campaigns targeting coca crops, often destroying food crops in the process. The toxic chemicals used in these campaigns have been <a href="https://www.benzinga.com/markets/cannabis/23/10/35170036/unseen-damage-how-the-war-on-drugs-accelerates-climate-crisis-new-report">linked to environmental degradation</a> and health problems, including skin disorders and miscarriages.&nbsp;
Read More: <a href="https://www.benzinga.com/markets/cannabis/23/09/34700973/colombian-cocaine-nears-oil-revenue-war-on-drugs-failure-and-rural-inequality-amplify-the-equati">Colombian Cocaine Nears Oil Revenue: War On Drugs Failure And Rural Inequality Amplify The Equation</a>
Moreover, the report underscores how U.S. assistance to Colombian law enforcement has disproportionately benefited private U.S. corporations, such as Dyncorp, which carried out the fumigation operations.
<h3 class="wp-block-heading">Drug War Militarization Increases Violence, Femicide Rates</h3>
Similarly, in Mexico, U.S. support for the drug war has fueled militarization, leading to record levels of drug-related violence. The U.S. has spent millions in Mexico on law enforcement, yet the <a href="https://www.benzinga.com/markets/cannabis/24/07/39672021/un-exposes-mexicos-dominance-as-a-global-meth-and-fentanyl-producer">funding has failed to curb drug trafficking or reduce violence</a>. Instead, it has exacerbated issues like femicide and repression against civil society.
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/11/42225423/mexico-president-claudia-sheinbaum-to-trump-neither-threats-nor-tariffs-will-solve-your-fentanyl-crisis">Mexico President Claudia Sheinbaum To Trump: &#8216;Neither Threats Nor Tariffs&#8217; Will Solve Your Fentanyl Crisis</a>
<h3 class="wp-block-heading">Call For Reorientation Of U.S. International Aid</h3>
Despite some positive shifts in U.S. domestic drug policy, such as <a href="https://www.benzinga.com/general/health-care/24/11/42146502/us-overdose-deaths-decline-as-fentanyl-potency-weakens-harm-reduction-expands">expanding harm reduction services</a>, international aid continues to reinforce a punitive approach.
The report calls for a reorientation of U.S. foreign aid from militarized enforcement strategies toward <a href="https://www.benzinga.com/markets/cannabis/24/06/39470316/un-health-officials-new-report-calls-for-end-to-drug-war-harm-reduction-scientific-approach-to-d">evidence-based harm reduction programs</a>. These responses would not only support the rights and well-being of people who use drugs but also address critical public health and development challenges in affected countries.
Read Next:
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<li><a href="https://www.benzinga.com/24/12/42325714/medical-marijuana-patient-from-canada-is-facing-a-life-sentence-in-a-dubai-prison-over-his-medicine">Canadian Citizen Sentenced To Life In Dubai Prison For Possession Of Medical Marijuana</a></li>
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$13-Billion Drug War Funded By U.S. Taxpayers Fuels Violence In Developing Countries: New Report

In a recent note, senior analyst Pablo Zuanic digs into the financial standing and valuation of Village Farms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VFF#NASDAQ">VFF</a>), the <a href="https://www.benzinga.com/markets/cannabis/24/11/41726679/village-farms-is-only-cannabis-operator-selected-to-represent-weed-industry-at-dea-rescheduling-">only cannabis company </a>anointed by the Drug Enforcement Agency (DEA) as one of the 25 DPs ("designated participants") in the <a href="https://www.benzinga.com/24/12/42270539/dea-live-hearing-on-marijuana-rescheduling-what-to-expect">administrative hearing</a> for the rescheduling of cannabis to Schedule III.
According to Zuanic, the company experienced temporary sales disruptions in the second half of the year, primarily due to stockouts caused by strong first-half demand. These disruptions are expected to normalize by the first quarter of 2025. Although the overall demand for Canadian recreational cannabis is <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41599546/canadas-cannabis-market-goes-cold-pot-prices-hit-bottom-why-top-producers-are-losin">slowing down</a>, Village Farms has been able to increase prices for some SKUs.
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<li>Get Benzinga&#8217;s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. You can't afford to miss out if you&#8217;re serious about the business.</li>
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<h3 class="wp-block-heading">Global Reach And Scale</h3>
Beyond Canada, Village Farms is focused on growing its international business, particularly in Germany, <a href="https://www.benzinga.com/topic/australia-cannabis">Australia</a>, and the UK. It plans to allocate Canadian production based on return on investment (ROI) and may consider minority investments in <a href="https://www.benzinga.com/general/market-summary/24/11/42126680/german-cannabis-20-tons-10m-grams-and-thats-only-0-3-of-the-market-whats-missing">international markets</a>.
The company will prioritize its branded domestic cannabis business and<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39609582/europe-is-turning-cash-flow-positive-well-see-what-happens-in-the-u-s-largest-canna"> international sales</a>. It will reduce B2B sales for domestic purposes and allocate more output to its branded products.
Branded sales margins are recovering to the 30-40% range and B2B margins are increasing due to higher prices and increased overseas demand. Zuanic noted approximately one-third of domestic B2B sales are re-exported to <a href="https://www.benzinga.com/topic/germany-cannabis">Germany</a>.
Read Also:<a href="https://www.benzinga.com/government/regulations/24/11/42198793/prohibitionist-group-denies-collusion-allegations-ahead-of-dea-cannabis-rescheduling-hearing"> Prohibitionist Group Denies Collusion Allegations Ahead Of DEA Cannabis Rescheduling Hearing</a>
<h3 class="wp-block-heading">Market Share </h3>
Hifyre data for October and November shows a sequential improvement in the Canadian recreational cannabis market, with a year-over-year growth of 6.7%. However, Village Farms experienced a deceleration to 1% year-over-year growth.
<ul>
<li>Among the top 10 players, Tilray (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLRY#NASDAQ">TLRY</a>) (-21%), Decibel (OTC:<a class="ticker" href="https://www.benzinga.com/stock/DBCCF#OTC">DBCCF</a>) (-23%), and Canopy Growth (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CGC#NASDAQ">CGC</a>) (-21%) experienced a decline in growth. On the other hand, Cannara (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LOVFF#OTC">LOVFF</a>) (+67%) and WeedMD (+23%) saw significant growth.&nbsp;</li>
<li>OGI (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OGI#NASDAQ">OGI</a>) (+13%), Auxly (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CBWTF#OTC">CBWTF</a>) (+33%), Motif (+10%), and Cronos Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRON#NASDAQ">CRON</a>) (+4%) also exhibited positive growth.</li>
<li>In terms of November market share, Tilray (TLRY) (9.1%) held the largest share, followed by OGI (7.0%), VFF (6.2%), Auxly (5.6%), Motif (5.3%), Cronos Group (5.1%), Decibel (4.7%), Cannara (4.0%), WeedMD (2.9%), and Canopy Growth (2.3%).</li>
</ul>
Read Also:<a href="https://www.benzinga.com/markets/cannabis/24/11/41805907/village-farms-quarterly-revenue-grows-20-yoy-as-the-cannabis-company-doubles-international-sales"> Village Farms Quarterly Revenue Grows 20% YoY As The Cannabis Company Doubles International Sales</a>
<h3 class="wp-block-heading">Valuation </h3>
Zuanic<a href="https://zuanicgroup.com/"> argues</a> that Village Farms' stock is undervalued due to its complex business model and gradual growth strategy, despite its strong performance in the Canadian cannabis market, international expansion and potential US opportunities. 
He calculates the company&#8217;s enterprise value (EV) to be around US$120 million. This valuation implies a low multiple of 0.4x current sales estimates and 5.6x EBITDA.
Zuanic says the market is not fully recognizing the value of VFF&#8217;s assets. 
If we strip out the value of the produce business, US CBD operations and <a href="https://www.benzinga.com/topic/texas-cannabis">Texas</a> greenhouses, Zuanic suggests that the remaining valuation for the cannabis unit is around US$19 million, or 0.1x estimated 2025 sales and 3x EBITDA. This is significantly lower than the<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41811378/aurora-vs-canopy-tilray-which-nasdaq-listed-cannabis-stock-offers-the-best-growth-p"> valuations of other major cannabis companies</a> like <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41613366/beyond-beer-tilrays-1-67-billion-market-play-is-this-cannabis-giant-still-a-smart-b">Tilray</a> and Aurora Cannabis (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACB#NASDAQ">ACB</a>).
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41925770/three-paths-to-cannabis-profits-village-farms-green-thumb-and-jushi-show-divergent-">Three Paths To Cannabis Profits: Village Farms, Green Thumb, And Jushi Show Divergent Strategies—Which Will Deliver?</a>

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President-elect Donald <a href="https://www.benzinga.com/24/12/42265694/trumps-kash-patel-fbi-pick-and-dea-nominee-could-signal-shift-in-drug-enforcement-priorities">Trump's choice to lead</a> the Drug Enforcement Administration announced on Tuesday he is withdrawing from consideration just three days after Trump made his nomination known, <a href="https://apnews.com/article/chad-chronister-trump-withdrawing-nominee-032bd91a5ef447e820e2b1f63e50861e">reported</a> the Associated Press.
Chad Chronister, Florida's Hillsborough County Sheriff, said in a post on X Tuesday evening that he will continue his duties as a Florida sheriff.
"Over the past several days, as the gravity of this very important responsibility set in, I've concluded that I must respectfully withdraw from consideration," Chronister wrote. He did not elaborate, and Trump's transition team did not immediately respond to a message from AP seeking comment.
"There is more work to be done for the citizens of Hillsborough County and a lot of initiatives I am committed to fulfilling," Chronister continued. "I sincerely appreciate the nomination, outpouring of support by the American people, and look forward to continuing my service as Sheriff of Hillsborough County."
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">To have been nominated by President-Elect <a href="https://twitter.com/realDonaldTrump?ref_src=twsrc%5Etfw">@realDonaldTrump</a> to serve as Administrator of the Drug Enforcement Administration is the honor of a lifetime. Over the past several days, as the gravity of this very important responsibility set in, I've concluded that I must respectfully… <a href="https://t.co/bvNF8m9Bh4">pic.twitter.com/bvNF8m9Bh4</a>
&mdash; Chad Chronister (@ChadChronister) <a href="https://twitter.com/ChadChronister/status/1864068222309277751?ref_src=twsrc%5Etfw">December 3, 2024</a></blockquote>
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<figcaption class="wp-element-caption">Chronister's nomination came at a pivotal time for the DEA, particularly as the agency navigates the federal marijuana rescheduling process. He had advocated for marijuana decriminalization, calling it the "right thing to do" as "society is evolving." Though Florida Gov. Ron DeSantis <a href="https://floridapolitics.com/archives/710176-ron-desantis-bucks-some-of-his-political-allies-backs-chad-chronister-to-dea/">endorsed</a> Chronister as head of the DEA, Trump's pick for the DEA job drew backlash from Florida conservatives, who blasted him over his actions during the COVID-19 pandemic, saying that his office "does not engage in federal immigration enforcement activities." Hillsborough County is located on the west side of the state and includes Tampa. Chronister&#8217;s withdrawal follows former Florida Republican congressman Matt Gaetz, Trump's first choice for attorney general, who <a href="https://www.benzinga.com/24/11/42119848/matt-gaetz-withdraws-name-from-ag-nomination-calls-sex-trafficking-controversy-a-distraction">pulled his name</a> for a post as attorney general after widespread criticism over scrutiny over multiple <a href="https://www.benzinga.com/news/legal/24/11/42078192/trumps-attorney-general-pick-matt-gaetz-resigned-from-congress-ethics-committee-to-decide-if-report-will-be-released" target="_blank" rel="noreferrer noopener">sex trafficking investigations</a>.</figcaption></figure>
Photo: Official photo of Chad Chronister in a June 2019 news conference

Trump's DEA Pick Withdraws From Consideration, Will Keep Job As Florida Sheriff

<a href="https://www.benzinga.com/topic/nebraska-cannabis">Nebraska's</a> Government is fighting cannabis reform both at the local and federal level.
State Attorney General Mike Hilgers recently filed an amended cross-claim on behalf of Secretary of State Bob Evnen in a lawsuit challenging <a href="https://www.benzinga.com/markets/cannabis/24/11/41764503/nebraska-says-yes-to-medical-cannabis-after-years-of-failed-legalization-attempts-heres-what-you">two successful</a> medical cannabis measures.
This move formally introduces new allegations of circulator fraud and widespread malfeasance. The case is moving forward after Lancaster County District Judge Susan Strong ruled in favor of the cannabis ballot sponsors.
Strong dismissed the claims last week, affirming that the medical cannabis petitions met all constitutional and statutory requirements. Yet, Nebraska's leadership is showing no signs of backing down. Regarding the additions, Hilgers <a href="https://nebraskaexaminer.com/briefs/attorney-generals-office-preparing-for-nebraska-medical-cannabis-lawsuit-appeal/">told</a> The Nebraska Examiner that the legal team was merely "taking advantage&#8221; of court rules to prepare for an appeal.
Get Benzinga&#8217;s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you&#8217;re serious about the business, you can&#8217;t afford to miss out.
<h3 class="wp-block-heading">Nebraska's Legal Opposition Goes National</h3>
Being one of the few remaining states where medical cannabis remains illegal, Nebraska's defiance is no longer just a state-level issue. In fact, the Attorney General's Office is the only one of its kind represented at the <a href="https://www.benzinga.com/24/12/42270539/dea-live-hearing-on-marijuana-rescheduling-what-to-expect">DEA hearing on marijuana rescheduling</a> hearings where opposing groups are discussing moving marijuana from a Schedule I to a Schedule III substance under the Controlled Substances Act (CSA).
The prohibitionist group <a href="https://www.benzinga.com/government/regulations/24/11/42198793/prohibitionist-group-denies-collusion-allegations-ahead-of-dea-cannabis-rescheduling-hearing">Smart Approaches to Marijuana </a>(SAM), with whom the AG of Nebraska shares representation are on the opposite side of rescheduling marijuana. 
GOP Governor Jim Pillen and Hilgers frame cannabis reform as a moral and safety issue.
In July 2024, during the <a href="https://www.benzinga.com/markets/cannabis/24/07/39932698/deas-call-for-public-input-on-cannabis-garnered-42-000-comments-majority-want-total-legalization">public comment</a> period of marijuana rescheduling evaluation, Hilgers and 19 Attorneys General from different states presented a letter where they emphasized the national and international ramifications of rescheduling marijuana, particularly concerning international drug treaties and medical cannabis use.
They <a href="https://www.regulations.gov/comment/DEA-2024-0059-41066">claim</a> &#8220;rescheduling marijuana as a Schedule III drug is likely the most consequential rule-making DEA has ever undertaken.&#8221;
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/11/41764503/nebraska-says-yes-to-medical-cannabis-after-years-of-failed-legalization-attempts-heres-what-you">Nebraska Says Yes To Medical Cannabis After Years Of Failed Legalization Attempts: Here&#8217;s What You Need To Know</a>
<h3 class="wp-block-heading">Nebraska's Growing Isolation On Cannabis</h3>
While other states, including neighboring&nbsp;Missouri&nbsp;and&nbsp;South Dakota, have legalized medical cannabis, Nebraska remains one of the few holdouts. 
Now the state GOP is fighting against approved ballots, which they&#8217;ve lost on their first round.
Thus Nebraska is increasingly isolated, with national trends shifting toward legalization and decriminalization. Still, much of the rollout of medical marijuana programs will depend on the willingness of authorities to move forward with regulations.
In a state with a single legislative chamber and a history of conservative governance, it's uncertain what will happen if the state chooses not to appeal the judge's ruling on the <a href="https://www.benzinga.com/markets/cannabis/24/11/41764503/nebraska-says-yes-to-medical-cannabis-after-years-of-failed-legalization-attempts-heres-what-you">approved cannabis ballots</a>, particularly when it comes time to establish the terms for medical cannabis.
Read Next: <a href="https://www.benzinga.com/24/12/42270539/dea-live-hearing-on-marijuana-rescheduling-what-to-expect">DEA LIVE Hearings On Marijuana Rescheduling, What To Expect</a>
Cover: Benzinga edit using Mike Hilgers media website + Tinakru via Pixabay

Regulations

Nebraska's Two-Front War On Cannabis

~ Easterly acquires a 295,253 square foot campus located in Cary, North Carolina ~
Easterly Government Properties, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DEA#NYSE">DEA</a>) (the "Company" or "Easterly"), a fully integrated real estate investment trust focused primarily on the acquisition, development and management of Class A commercial properties leased to the U.S. Government and its adjacent partners, announced today that it has acquired a 97% leased, combined 295,253 square foot campus across three assets leased primarily to the Wake County Public School System (WCPSS).
The three properties serve as multi-purpose facilities, functioning as both operational headquarters and public-facing service centers that are critical to the tenant's mission. WCPSS first occupied these facilities in 2011 under a lease that does not expire until 2034.

Easterly Government Properties Acquires 3 Building Campus Leased To AAA Rated Wake County In Cary, North Carolina; No Financial Terms Disclosed

The Drug Enforcement Administration (DEA) launched its inaugural hearing on Monday December 2, 2024, to address the Biden administration's proposal to reclassify marijuana from Schedule I to Schedule III under the <a href="https://www.benzinga.com/markets/cannabis/24/02/36916329/is-marijuana-a-controlled-substance-wait-what-is-a-controlled-substance">Controlled Substances Act </a>(CSA).
According to a <a href="https://www.benzinga.com/markets/cannabis/24/11/42169153/dea-judge-blocks-researchers-motion-in-cannabis-rescheduling-case">DEA advisory released </a>on November 26, the primary goal is to organize the procedural groundwork for addressing the merits of rescheduling.
While this initial meeting is procedural, it sets the stage for a series of substantive discussions slated for 2025 that could redefine the landscape of cannabis regulation in the United States.
<h3 class="wp-block-heading">A Procedural Step Towards Reform</h3>
The meeting, held at DEA headquarters in Arlington, Virginia, is not to take witness testimony but instead is focusing on logistical matters, including scheduling and legal frameworks for future evidentiary hearings. The judge will question Some witnesses proposed by representatives, particularly &#8220;experts.&#8221;
In-person attendance is restricted to designated participants and pre-approved media representatives, with public access available via a livestream on the DEA's website. You can follow the hearing via this link:
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<h3 class="wp-block-heading">Implications Of Rescheduling</h3>
Reclassifying cannabis to Schedule III would mark a historic shift, as it is currently classified alongside drugs like heroin and LSD in Schedule I, reserved for substances with "no accepted medical use" and a high potential for abuse. A move to Schedule III would acknowledge potential medical benefits while maintaining regulation under the CSA. 
Changes would include:
<ul>
<li>Allow cannabis businesses to claim federal tax deductions under <a href="https://www.benzinga.com/markets/cannabis/24/10/41318914/almost-every-major-cannabis-company-could-see-positive-cash-flow-if-280e-is-removed-in-2025">IRS Section 280E</a>, alleviating a major financial burden.</li>
<li>Facilitate expanded scientific research by easing regulatory barriers.</li>
<li>Maintain certain criminal prohibitions and regulations on production and distribution.</li>
</ul>
Despite these advancements, the proposal stops short of full federal legalization.
Read Next: <a href="https://www.benzinga.com/24/11/42173101/dea-denies-allegations-of-unlawful-talks-with-anti-marijuana-group">DEA Denies Allegations Of Colluding With Anti-Marijuana Group While Involved In Cannabis Rescheduling Process</a>
<h3 class="wp-block-heading">Participants List</h3>
The upcoming hearings will involve testimonies from experts, stakeholders, representatives from advocacy groups and the cannabis industry. Also present is opposing group <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">Smart Approach To Marijuana</a>, which has been accused of engaging in ex parte communications with the DEA.
This is the final list of participants though some have consolidated their legal representations, meaning that the same lawyer will represent them.
<ul>
<li>American Academy of Hospice and Palliative Medicine, represented by Dr. Chad Kollas</li>
<li>American College of Occupational and Environmental Medicine, represented by Natalie P. Hartenbaum</li>
<li>Cannabis Biosciences International Holdings, represented by Director and Treasurer John Jones</li>
<li>Cannabis Industry Victims Educating Litigators, represented by Senior Counsel David Evans</li>
<li>Community Anti-Drug Coalitions of America, represented by Public Policy Consultant Sue Thau</li>
<li>Dr. Kenneth Finn&nbsp;(of Colorado Pain Institute)</li>
<li>Drug Enforcement Administration of Federal Narcotics Agents, represented by Agent in Charge Marshall Fisher</li>
<li>Hemp for Victory, represented by Robert Head, Dr. Corey Burchman, Dr. Darinia Douchi, and Victor Bohm</li>
<li>International Academy on the Science and Impact of Cannabis, represented by Roneet Lev</li>
<li>International Association of the Chiefs of Police</li>
<li>Massachusetts Cannabis Advisory Board, represented by Research Subcommittee Chair Ellen Brown</li>
<li>National Cannabis Industry Association, represented by CEO Aaron Smith and Director of Government Relations Michelle Rutter Friberg</li>
<li>National Drug and Alcohol Screening Association, represented by Jo McGuire</li>
<li>National Sheriffs' Association, represented by Director of Government Affairs Yesim Karaman and Collin County Sheriff Jim Skinner (Texas)</li>
<li>National Transportation Safety Board, represented by Chair Jennifer Homendy</li>
<li>Phillip Drum, Pharm D.Smart Approaches to Marijuana, represented by Patrick Philbin</li>
<li>St. Michael's College, represented by Psychology Professor Ari Kirshenbaum</li>
<li>State of Connecticut Office of Cannabis Ombudsman, represented by Erin Gorman Kirk</li>
<li>State of Nebraska, represented by Attorney General Mike Hilgers</li>
<li>Tennessee Bureau of Investigation, represented by Kim Litman</li>
<li>The Commonwealth Project, represented by Katy Green</li>
<li>The Doc App (d/b/a My Florida Green), represented by President and CEO Nicholas Garulay and in-house counsel Jason Castro</li>
<li>Veterans Initiative 22, represented by Executive Director Shanetha Lewis</li>
<li>Village Farms International, represented by Shane Pennington of Porter Wright</li>
</ul>
This list was criticized because of allegedly <a href="https://www.benzinga.com/news/legal/24/11/41923948/dea-faces-lawsuit-alleging-bias-in-marijuana-rescheduling-process">over-representing groups </a>that are opposed to cannabis rescheduling and general legalization.
<ul>
<li>Read Also:<a href="https://www.benzinga.com/news/legal/24/11/41923948/dea-faces-lawsuit-alleging-bias-in-marijuana-rescheduling-process"> DEA Faces Lawsuit Alleging Bias In Marijuana Rescheduling Process</a></li>
</ul>
COVER: DEA Live stream

DEA LIVE Hearings On Marijuana Rescheduling, What To Expect

President-elect Donald Trump's recent nominations for key law enforcement roles suggest a pivot in federal drug enforcement with potential ramifications for <a href="https://www.benzinga.com/topic/cannabis-legalization">cannabis legalization policy</a>. 
Trump <a href="https://www.benzinga.com/news/24/12/42256740/trump-taps-loyalist-patel-for-fbi-director-signaling-major-overhaul">nominated</a> Kash Patel, a former national security official, to lead the FBI and Chad Chronister, a Florida sheriff, as administrator of the Drug Enforcement Administration (DEA). Both appointments, subject to Senate confirmation, align with Trump&#8217;s broader law-and-order agenda.
<h2 class="wp-block-heading">Kash Patel's FBI Overhaul</h2>
Patel's vision for the FBI involves a sweeping restructuring, which includes dismantling its intelligence-gathering functions and purging its ranks of employees who are viewed as disloyal to Trump, including the media.
He has proposed reforms that could impact how federal resources are allocated to drug enforcement, including cannabis-related offenses. Under his leadership, the FBI may narrow its focus on significant criminal cases, potentially reducing its involvement in low-level marijuana possession enforcement. 
Though it could also work out, at least in the short term, that Patel will be busy chasing down conspirators in the <a href="https://www.benzinga.com/topic/biden-administration">Biden administration</a> and the media.
"We're going to come after the people in the media who lied about American citizens who helped Joe Biden rig presidential elections," Patel told Steve Bannon in a podcast last December.
And did we mention that Patel wrote a trilogy of children's books about Trump called "The Plot Against the King" featuring Trump as a fairy tale monarch and Patel as a knight in his service?
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/09/41034042/fbi-report-over-200-000-people-were-arrested-for-cannabis-related-violations-in-2023-how-is-that">FBI Report Over 200,000 People Were Arrested For Cannabis-Related Violations In 2023: How Is That Possible?</a> 
<h2 class="wp-block-heading">DEA Leadership And Cannabis Enforcement</h2>
Chronister's nomination as DEA chief underscores a strong focus on combating drug trafficking, particularly <a href="https://www.benzinga.com/topic/fentanyl">fentanyl</a> and other opioids. 
In a Truth Social post on Saturday, Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/113574561799756610">said</a> Chronister will work with his <a href="https://www.benzinga.com/news/legal/24/11/42143770/trumps-pick-for-attorney-general-is-no-matt-gaetz-when-it-comes-to-cannabis-reform" target="_blank" rel="noreferrer noopener">attorney general nominee Pam Bondi</a> to help secure the U.S.-Mexico Border. Chronister replied that he was honored and &#8220;deeply humbled by this opportunity to serve our nation.&#8221;
As a sheriff, Chronister has shown support for decriminalizing cannabis in the past but did not publicly support or malign Florida's recent <a href="https://www.benzinga.com/markets/cannabis/24/11/41763514/florida-rejects-cannabis-legalization-amendment-supported-by-trump-detested-by-desantis">unsuccessful Amendment 3 </a>proposal to legalize marijuana. 
However, if approved, it seems Chronister's marching orders will be to prioritize high-level trafficking and leave lower-level cannabis offenses to state and local authorities while maintaining the <a href="https://www.benzinga.com/markets/cannabis/24/01/36624064/deas-cannabis-classification-time-to-right-a-decades-old-mistake-as-feds-confirm-marijuanas-medi">DEA's historical stance</a> against federal cannabis legalization.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/24/11/42220254/dea-sets-stage-for-marijuana-rescheduling-with-december-2-hearing">DEA Sets Stage For Marijuana Rescheduling With December 2 Hearing</a></li>
</ul>
Photo: Courtesy DEA, FBI

Trump's Kash Patel FBI Pick And DEA Nominee Could Signal Shift In Drug Enforcement Priorities

As the formal review process for rescheduling cannabis unfolds, industry players are closely watching its potential to transform the sector. With the DEA hearing delayed until early 2025 and a possible Trump presidency adding uncertainty, cannabis businesses are preparing for what rescheduling to Schedule III could mean.&nbsp;
From FDA oversight to interstate commerce and pharmaceutical-grade standards, these changes could fundamentally reshape the landscape—and investors and businesses need to be ready.
<ul>
<li>Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. You can&#8217;t afford to miss out if you're serious about the business.</li>
</ul>
<h2 class="wp-block-heading">Rescheduling: A Door To Big-Box Pharmacies?</h2>
Denise Pollicella, a cannabis attorney and head of Omnus Law&#8216;s cannabis practice, points out that rescheduling cannabis isn't just about new retail partnerships but about overhauling how cannabis businesses operate.&nbsp;
"It's about transforming how cannabis businesses operate—adapting to FDA oversight, meeting pharmaceutical-grade standards, and navigating stricter compliance requirements," she told Benzinga Cannabis in an exclusive interview.
Rescheduling to Schedule III could allow major pharmaceutical retailers like CVS (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>) and Walgreens (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>) to carry cannabis. But is the pathway straightforward? 
Pollicella anticipates a system similar to the <a href="https://www.benzinga.com/government/regulations/24/11/42068539/billion-dollar-strike-farm-bill-amendment-could-change-the-hemp-industry">2018 hemp legalization framework</a>, where states submit regulatory schemes to meet federal guidelines. "Most states prefer to regulate these things themselves, particularly from a financial and tax point of view," she said, noting states' interest in retaining control of fees and fines.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="500" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/28053734/Denise-Pollicella-Square-Website-Image.png" alt="" class="wp-image-668972" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/28053734/Denise-Pollicella-Square-Website-Image.png 500w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/28053734/Denise-Pollicella-Square-Website-Image-300x300.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/28053734/Denise-Pollicella-Square-Website-Image-150x150.png 150w" sizes="(max-width: 500px) 100vw, 500px" /><figcaption class="wp-element-caption">Denise Pollicella </figcaption></figure>
<h3 class="wp-block-heading">FDA Oversight: Stricter Standards Ahead</h3>
If cannabis becomes a pharmaceutical-grade product, compliance with<a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/08/33482140/rescheduling-cannabis-what-are-the-implications-for-msos-tax-rule-280e-fda-and-phar"> FDA standards will significantly change how businesses operate</a>. Pollicella explained that the cannabis industry has historically focused on ensuring safety and avoiding contaminants, with minimal emphasis on seed traceability. "Most of the testing and analysis has revolved around making sure that it's safe and doesn't have contaminants, and then around THC and CBD levels," she noted.
Pollicella added that transitioning to pharmaceutical-grade products would require stricter production standards and significantly more testing, which could drive up costs in an already expensive industry. Pollicella noted the likely challenges: "When it goes to a more pharmaceutical-grade product, not only will the production standards have to become more strict, but you'll also have significantly more testing."
Read Also:<a href="https://www.benzinga.com/markets/cannabis/24/07/39720968/is-big-pharma-poised-to-take-over-cannabis-3-companies-already-manage-8-in-10-drug-prescriptions"> Is Big Pharma Poised To Take Over Cannabis? 3 Companies Already Manage 8 In 10 Drug Prescriptions In The US</a>
<h3 class="wp-block-heading">Interstate Commerce</h3>
<a href="https://www.benzinga.com/markets/cannabis/24/10/41502695/exclusive-tilray-ceo-irwin-simon-on-why-us-cannabis-rescheduling-wont-change-a-billion-dollar-pl">Rescheduling cannabis from Schedule I to Schedule III </a>could pave the way for interstate trade, a shift that would fundamentally reshape supply chains and market dynamics. By lowering cannabis&#8217;s federal regulatory classification, rescheduling would enable cannabis to be treated more like other pharmaceutical products, potentially allowing producers in one state to sell to buyers in another. However, this transition would introduce new regulatory complexities.
Pollicella thinks that cannabis crossing state lines will require permissions, excise taxes, and strict identification as medical marijuana, and noted that states with mature medical markets, such as <a href="https://www.benzinga.com/topic/michigan-cannabis">Michigan</a>, <a href="https://www.benzinga.com/topic/pennsylvania-cannabis">Pennsylvania</a>, and <a href="https://www.benzinga.com/topic/florida-cannabis">Florida</a>, could dominate the wholesale market. 
MSOs operating in these states include TerrAscend (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TRSSF#OTC">TRSSF</a>), Cresco Labs Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CRLBF#OTC">CRLBF</a>) in Michigan; Green Thumb Industries Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GTBIF#OTC">GTBIF</a>), Curaleaf (OTC:<a class="ticker" href="https://www.benzinga.com/stock/CURLF#OTC">CURLF</a>), and Verano Holdings Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VRNOF#OTC">VRNOF</a>) in Pennsylvania; and Trulieve Cannabis Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCNNF#OTC">TCNNF</a>) and Ayr Wellness Inc. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/AYRWF#OTC">AYRWF</a>) in Florida.
These companies have heavily invested in CapEx for pharmaceutical-grade cannabis to meet stringent standards aligned with FDA requirements, positioning them to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/39609582/europe-is-turning-cash-flow-positive-well-see-what-happens-in-the-u-s-largest-canna">supply pharmacies and other large-scale buyers</a>. "Michigan has tried to position itself as being nearly equal to FDA standards," Pollicella explained, highlighting the state's competitive advantage.&nbsp;
<h3 class="wp-block-heading">M&amp;A Activity: A Rescheduled Catalyst? </h3>
The prospect of federal rescheduling is already sparking discussions about mergers and acquisitions. Pollicella foresees significant consolidation as businesses struggle to meet pharmaceutical-grade compliance. "Companies that have grown thoughtfully and in a measured way are going to knock it out of the park," she said, emphasizing the Darwinian nature of the cannabis business.
Midwest markets, like Michigan and Illinois, are expected to play pivotal roles in<a href="https://www.benzinga.com/cannabis/deals"> M&amp;A activity</a>. Pollicella highlighted Michigan's readiness, citing its strict testing standards and proactive lobbying efforts. &#8220;Michigan has tried to position itself as being nearly equal to FDA standards,&#8221; she explained, adding that the state could become a major producer for the Midwest.
Read Also:<a href="https://www.benzinga.com/markets/cannabis/24/05/38881456/bidens-greenlight-what-to-know-about-fed-regulated-marijuana-markets-legal-circuits-and-complian"> Biden&#8217;s Greenlight: What To Know About Fed-Regulated Marijuana, Markets, Legal Circuits And Compliance</a>
<h2 class="wp-block-heading">Will A Trump Presidency Delay Progress?</h2>
Pollicella warns that<a href="https://www.benzinga.com/news/legal/24/11/42143770/trumps-pick-for-attorney-general-is-no-matt-gaetz-when-it-comes-to-cannabis-reform"> rescheduling is far from guaranteed.</a> "Anybody counting on the rescheduling of marijuana down to Schedule III in the new administration is making an assumption that's not necessarily based on anything we've seen yet," she cautioned.
While some industry advocates hope the promise of tax revenue and economic growth will sway federal policymakers, Pollicella remains skeptical. "It's not a priority for this administration," she said, adding that substantial lobbying will likely be needed to make progress.
<h3 class="wp-block-heading">2025</h3>
Despite the challenges, Pollicella is optimistic about the industry's potential under a rescheduled framework. She believes businesses with scalable production capabilities and strategic foresight will thrive. However, she also underscores the need for readiness.&nbsp;
Despite the significant political and economic discussions surrounding cannabis rescheduling, the process itself is more straightforward than many assume. Pollicella explains that the Controlled Substances Act of 1970 placed cannabis on Schedule I through political and legislative decisions, rather than medical consensus. "None of the criteria for Schedule I—no known medical use, no known safe use, and a high probability of addictiveness—really apply to marijuana," she said. As with its initial classification, rescheduling will require bipartisan consensus and can follow one of two paths.
Congress could pass legislation to amend the Controlled Substances Act, or the Attorney General could direct the FDA and <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">DEA to conduct a review</a> and implement rescheduling through administrative rule-making.&nbsp;
Read Also: <a href="https://www.benzinga.com/24/11/42220254/dea-sets-stage-for-marijuana-rescheduling-with-december-2-hearing">DEA Sets Stage For Marijuana Rescheduling With December 2 Hearing</a>
<h3 class="wp-block-heading">Political Will </h3>
"Once there's political will, it can happen like this," Pollicella said, snapping her fingers metaphorically to illustrate how quickly the process could move once initiated.
This swift <a href="https://www.benzinga.com/markets/cannabis/24/08/40632193/marijuana-rescheduling-is-not-solution-to-industrys-banking-issues-congressional-researchers-say">rescheduling would require states to align their regulatory schemes with federal guidelines</a>. Pollicella anticipates that it might follow a model similar to the 2018 hemp rollout:&nbsp;
"The <a href="https://www.benzinga.com/government/regulations/24/11/41936736/fda-commissioner-califf-candid-on-trumps-impact-we-just-dont-know-whats-going-to-happen">FDA</a> could give states with existing regulatory structures a timeline, say six to nine months, to refine their programs<a href="https://www.benzinga.com/general/biotech/24/09/40820581/want-organic-cannabis-operators-are-turning-to-this-tech-to-save-millions-and-get-certified"> to meet federal standards</a>. States that comply could maintain control, while those that don't might see federal intervention."
However, the question remains whether the upcoming administration will prioritize this process. "The real challenge isn't the steps—it's the political will to move forward," she noted.
Read Next: <a href="https://www.benzinga.com/news/retail-sales/24/11/42193387/federal-policy-could-add-3-billion-to-cannabis-industry-on-track-to-reach-55-billion-by-2030">Federal Policy Could Add $3 Billion To Cannabis Industry: On Track To Reach $55 Billion By 2030</a>

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Pharma-Grade Cannabis Could Hit Walgreens & CVS—But Can The Industry Survive The FDA?

When the Drug Enforcement Administration <a href="https://www.benzinga.com/markets/cannabis/23/07/33156524/dea-turns-50-unveiling-the-ineffectiveness-of-the-ongoing-war-on-drugs-now-what">marked its 50th anniversary </a>last year, it had spent over $1 trillion partly to enforce Richard Nixon's 1970 Controlled Substances Act, the cornerstone of his <a href="https://www.benzinga.com/topic/war-on-drugs">War on Drugs</a>, which is widely viewed as a failure.
Now, doesn't this sound like the type of government agency President-elect Donald Trump's new Department of Government Efficiency&nbsp;(DOGE) might want to take a closer look at? The DOGE <a href="https://www.benzinga.com/news/global/24/11/41927289/trump-appoints-elon-musk-and-vivek-ramaswamy-to-lead-doge-targeting-bureaucracy-and-65-trillion-federal-spending-we-will-not-go-gently">initiative</a>, co-led by Elon Musk and Vivek Ramaswamy, is meant to focus on dismantling bureaucracy, reducing regulations and cutting wasteful expenditures.
Both Musk and Ramaswamy have publicly acknowledged they are in favor of legalizing cannabis. In fact, so has <a href="https://www.benzinga.com/markets/cannabis/24/10/41370277/donald-trump-appears-in-florida-cannabis-legalization-campaign-ad-discussing-his-support-for-leg">Trump for that matter</a>.
Read Also: <a href="https://www.benzinga.com/24/11/42173101/dea-denies-allegations-of-unlawful-talks-with-anti-marijuana-group">DEA Denies Allegations Of Colluding With Anti-Marijuana Group While Involved In Cannabis Rescheduling Process</a>
Meanwhile, the DEA, health officials and interested cannabis advocates are taking part in at times contentious <a href="https://www.benzinga.com/topic/cannabis-rescheduling" target="_blank" rel="noreferrer noopener">marijuana rescheduling pre-hearings</a> this week with the formal meeting scheduled to begin Dec. 2. The hearings stem from <a href="https://www.benzinga.com/markets/cannabis/23/08/34126690/hhs-secretary-confirms-it-is-recommending-cannabis-be-rescheduled-per-bidens-directive">President Joe Biden&#8216;s August 2023 directive</a> to downgrade the status of cannabis in the Controlled Substances Act (CSA).
The CSA, signed by Nixon in 1970, classifies drugs and sets criminal penalties for their use, possession and distribution.
While he was at it, Nixon launched the War on Drugs, which actually turned out to be an assault on anti-Vietnam-war protestors and the Black community.
How do we know that, you might ask? Someone who helped Nixon pull the project together named names.
<h2 class="wp-block-heading">John Ehrlichman Spills The Beans</h2>
"The Nixon campaign in 1968, and the Nixon White House after that, had two enemies: the antiwar left and black people," Nixon's top adviser, John Ehrlichman told the writer Dan Baum in a 1994 interview that Baum later used in a Harper's Magazine <a href="https://harpers.org/archive/2016/04/legalize-it-all/">article</a>. 
&#8220;We knew we couldn't make it illegal to be either against the war or blacks, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalizing both heavily, we could disrupt those communities,&#8221; said Ehrlichman who died in 1999. 
&#8220;We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news. Did we know we were lying about the drugs? Of course, we did."
<h2 class="wp-block-heading">DEA&#8217;s Changing Attitude </h2>
The DEA&#8217;s focus, having shifted from its strident anti-marijuana goals, now includes among other things <a href="https://www.benzinga.com/markets/cannabis/24/01/36707665/dea-seizes-largest-amount-of-fentanyl-in-its-history-386m-lethal-doses-enough-to-kill-every-amer">stemming the flow </a>of fentanyl into the U.S.
Nevertheless, Musk and Ramaswamy, with scientific research confirming the health benefits of cannabis and the fact that it&#8217;s legal in some form in 40 states, it might be the moment to cut back on an agency that <a href="https://www.gao.gov/products/gao-23-105508">continues to spend</a> billions on punitive actions against a substance both you and <a href="https://www.benzinga.com/markets/cannabis/24/03/37964845/9-out-of-10-americans-support-some-form-of-legal-cannabis-pew-research-center-finds">nearly 80% of the U.S. population</a> either partake in or believe should be legal. What do you say, gentlemen?
Now Read:
<ul>
<li><a href="https://www.benzinga.com/24/11/42169153/dea-judge-blocks-researchers-motion-in-cannabis-rescheduling-case">DEA Judge Blocks Researcher&#8217;s Motion In Cannabis Rescheduling Case</a></li>
</ul>
Photo: Shutterstock.

Opinion

Elon Musk, Vivek Ramaswamy: Here's An Agency You Might Want To Cut Back On And Save $40 Billion A Year

Smart Approaches to Marijuana (SAM), an active prohibitionist group, has denied allegations of improper communications with the Drug Enforcement Administration (DEA) ahead of next week&#8217;s <a href="https://www.benzinga.com/topic/cannabis-rescheduling">cannabis rescheduling</a> hearing.
SAM's Nov. 25 legal response dismissed the claims as unfounded and aimed at distracting from the proceedings, <a href="https://www.marijuanamoment.net/dea-says-it-didnt-conspire-with-anti-marijuana-group-dismissing-allegedly-illegal-talks-as-gossip/">reported</a> Marijuana Moment.
The hearings, scheduled to begin Dec. 2, will explore the Department of Justice's proposed rule to reschedule cannabis from a Schedule I to a Schedule III drug under the Controlled Substances Act (CSA). The proposal follows recommendations from the U.S. Department of Health and Human Services and the Food and Drug Administration.
<h3 class="wp-block-heading">SAM Pushes Back On Collusion Allegations</h3>
The allegations, raised in a <a href="https://www.benzinga.com/markets/cannabis/24/11/41726679/village-farms-is-only-cannabis-operator-selected-to-represent-weed-industry-at-dea-rescheduling-">joint motion</a> by cannabis company Village Farms International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VFF#NASDAQ">VFF</a>) and veterans group Hemp for Victory, sought to disqualify SAM and the DEA from participating in the hearings. 
SAM, one of 25 designated participants, countered that the motion was a baseless attempt to smear its reputation.
"This motion is a transparent effort to smear both SAM and the DEA," SAM's lawyers, Patrick F. Philbin and Chase Harrington, wrote. 
Read Also: <a href="https://www.benzinga.com/24/11/42169153/dea-judge-blocks-researchers-motion-in-cannabis-rescheduling-case">DEA Judge Blocks Researcher&#8217;s Motion In Cannabis Rescheduling Case</a>
Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you're serious about the business, you can't afford to miss out.
They argued that the claims amounted to a "sideshow" and urged the DEA's Administrative Law Judge (ALJ) John J. Mulrooney to focus on the substance of the hearing.
While SAM denied any ex parte communications after the May 21 publication of the notice of proposed rulemaking (NPRM), it acknowledged earlier <a href="https://www.benzinga.com/24/11/42173101/dea-denies-allegations-of-unlawful-talks-with-anti-marijuana-group">social media posts</a> by its president, Kevin Sabet, predicting that Attorney General Merrick Garland, rather than DEA Administrator Anne Milgram, would sign the NPRM.
Critics allege that Sabet's May 6 post referencing "confidential sources inside DEA" raises questions about transparency. As for that evidence, SAM's lawyers argued the post was made before the NPRM's issuance.
<h3 class="wp-block-heading">A Related Case</h3>
The same DEA judge leading this case has recently denied the <a href="https://www.benzinga.com/24/11/42169153/dea-judge-blocks-researchers-motion-in-cannabis-rescheduling-case">request</a> by research company <a href="https://www.benzinga.com/24/11/42169153/dea-judge-blocks-researchers-motion-in-cannabis-rescheduling-case">MedPharm</a> to participate in the December 2 hearing, citing his limited authority and deferring to the DEA Administrator&#8217;s discretion over participant selection.
MedPharm criticized the exclusion of DEA-licensed marijuana researchers and the inclusion of prohibitionist groups, calling the process biased and undermining its legitimacy. 
Critics worry the imbalance in witness selection could skew the hearing&#8217;s outcomes, despite support from other federal agencies for rescheduling.
<ul>
<li>Read Next: <a href="https://www.benzinga.com/24/11/42173101/dea-denies-allegations-of-unlawful-talks-with-anti-marijuana-group">DEA Denies Allegations Of Colluding With Anti-Marijuana Group While Involved In Cannabis Rescheduling Process</a></li>
</ul>
COVER: AI-Generated image

Prohibitionist Group Denies Collusion Allegations Ahead Of DEA Cannabis Rescheduling Hearing

The <a href="https://www.benzinga.com/topic/drug-enforcement-administration">Drug Enforcement Administration</a> (DEA) has denied accusations of improper communication with cannabis prohibitionist group Smart Approaches to Marijuana (SAM) during the Biden administration's <a href="https://www.benzinga.com/topic/cannabis-rescheduling">marijuana rescheduling process</a>.
In a recent filing <a href="https://www.marijuanamoment.net/dea-says-it-didnt-conspire-with-anti-marijuana-group-dismissing-allegedly-illegal-talks-as-gossip/">reported</a> by Marijuana Moment, the agency dismissed these allegations as "gossip." While the DEA admitted to the communication, it argued they were no unlawful ex parte and that no harm was done and therefore, the motion by<a href="https://www.benzinga.com/markets/cannabis/24/11/41726679/village-farms-is-only-cannabis-operator-selected-to-represent-weed-industry-at-dea-rescheduling-"> Village Farms International</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VFF#NASDAQ">VFF</a>) and Hemp for Victory should be dismissed.
<h3 class="wp-block-heading">Allegations Of Misconduct</h3>
Part of the accusations stem from social media posts by SAM president and CEO Kevin Sabet.
In a post May 6, 2024 on X, Sabet admitted to having conversations with &#8220;two confidential sources inside DEA.&#8221; Sabet said these discussions provided inside information about the agency's stance on marijuana rescheduling, including a claim that DEA Administrator Anne Milgram would not approve a proposed rule.
This post was presented as evidence by <a href="https://www.benzinga.com/cannabis">cannabis</a> advocacy groups to support their broader claim that <a href="https://www.benzinga.com/topic/dea-cannabis">the DEA</a> holds a contradictory position, alleging the agency is acting as both judge and participant in the cannabis rescheduling process.
The post by Sabet admitting to the conversations with insider sources is still on X. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">BIG: I can now say with full confidence that the Administrator of DEA, Anne Milgram, did NOT sign the rescheduling order, breaking with five decades of precedent and established law and regulations (two confidential sources inside DEA and another outside DEA with intimate…
&mdash; Kevin Sabet (@KevinSabet) <a href="https://twitter.com/KevinSabet/status/1787569052782846142?ref_src=twsrc%5Etfw">May 6, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Read Also: <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">DEA Slammed For Unlawful Talks With Cannabis Opponents &#8211; The Plot Thickens</a>
Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you're serious about the business, you can't afford to miss out.
<h3 class="wp-block-heading">DEA's Defense</h3>
According to the DEA's filing, the cannabis organizations' evidence is not proof of <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">misconduct</a>. &#8220;Movants' own evidence fails to demonstrate that any unlawful ex parte communication took place," the agency said. A movant is any party that makes a motion in a case.
The DEA flatly rejected accusations of bias or impropriety, emphasizing that the submitted evidence amounts to little more than hearsay. 
"The Movants would have this tribunal embark on a fishing expedition in search of evidence to support these sweeping, unsupported claims, which at best can be categorized as gossip, not ex parte communications," the DEA stated.
It also dismissed calls for the <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">agency's removal </a>from the rescheduling process, arguing that there is no legal precedent for such action. 
"The only authority cited by the Movants on this point simply supports the notion that specific individuals may be removed from the proceeding under the appropriate circumstances," per the filing.
Additionally, the DEA pointed out that no misconduct has been alleged against its attorneys involved in the proceedings, further undermining the motion's validity.
As a consequence, the DEA requested the motion's dismissal. "The tribunal correctly questions the seriousness of the remedies sought by the Movants and as such, should deny the motion," the agency concluded. 
Village Farms International is <a href="https://www.benzinga.com/markets/cannabis/24/11/41726679/village-farms-is-only-cannabis-operator-selected-to-represent-weed-industry-at-dea-rescheduling-">the only cannabis operator</a> selected to represent the industry at the<a href="https://www.benzinga.com/markets/cannabis/24/11/41726679/village-farms-is-only-cannabis-operator-selected-to-represent-weed-industry-at-dea-rescheduling-"> </a>upcoming hearing on December 2. 
<ul>
<li>Read Next: <a href="https://www.benzinga.com/24/11/42169153/dea-judge-blocks-researchers-motion-in-cannabis-rescheduling-case">DEA Judge Blocks Researcher&#8217;s Motion In Cannabis Rescheduling Case</a></li>
</ul>
Cover: AI generated image

DEA Denies Allegations Of Colluding With Anti-Marijuana Group While Involved In Cannabis Rescheduling Process

A <a href="https://www.google.com/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.benzinga.com/topic/dea-cannabis&amp;ved=2ahUKEwi-55vk7veJAxX8IbkGHctZFHAQFnoECBkQAQ&amp;usg=AOvVaw2exrY_OTgOJ9N-asMwoMUl">DEA</a> administrative law judge has denied MedPharm's motion to participate in the December 2 marijuana rescheduling hearing, deferring to DEA Administrator Anne Milgram's authority. 
MedPharm, a DEA-registered research firm, criticized the exclusion of marijuana researchers and the inclusion of prohibitionist organizations, calling the process biased.
<h3 class="wp-block-heading">MedPharm&#8217;s Motion And Criticism</h3>
MedPharm filed a motion to intervene after being excluded from the witness list, arguing the fact that no DEA-licensed marijuana researchers were included.
"The deck appears to be stacked against those in favor" of rescheduling marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA), MedPharm noted.
It also alleged that the witness list, which included the anti-cannabis prohibitionist group <a href="https://www.benzinga.com/markets/cannabis/24/05/38733313/anti-cannabis-group-raises-money-to-scuttle-dea-rescheduling-effort">Smart Approaches to Marijuana</a> (SAM), undermines the legitimacy of the process, describing the decision as an attempt to &#8220;thwart a legitimate process,&#8221; as <a href="https://www.marijuanamoment.net/dea-judge-denies-agency-registered-drug-companys-request-to-join-marijuana-rescheduling-hearing/">reported</a> Marijuana Moment.
Read Also: <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">DEA Slammed For Unlawful Talks With Cannabis Opponents &#8211; The Plot Thickens</a>
Get Benzinga&#8217;s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter&nbsp;<a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you&#8217;re serious about the business, you can&#8217;t afford to miss out.
<h3 class="wp-block-heading">Judge Mulrooney's Decision</h3>
DEA Administrative Law Judge John Mulrooney denied MedPharm's motion, citing statutory limits on his authority. 
"The Administrator exercised her discretion to fix the number of participants," Mulrooney said, adding that expanding the list would exceed his role under the Administrative Procedures Act.
Mulrooney acknowledged the value of wider input but noted that the DEA prioritizes participants who can demonstrate adverse impacts from the proposed policy change, which becomes apparent by viewing the <a href="https://www.benzinga.com/markets/cannabis/24/11/41726679/village-farms-is-only-cannabis-operator-selected-to-represent-weed-industry-at-dea-rescheduling-">biased list</a>.
The exclusion of key scientific voices has <a href="https://www.benzinga.com/markets/cannabis/24/11/41726679/village-farms-is-only-cannabis-operator-selected-to-represent-weed-industry-at-dea-rescheduling-">raised concerns</a> about the process's fairness, particularly as the Department of Health and Human Services (HHS) and the DEA&#8217;s Office of Legal Counsel support rescheduling.
The upcoming hearing will allow cross-examination of witnesses from both sides, but critics warn the imbalance could skew outcomes. Mulrooney is leading another case where the DEA is accused of engaging in <a href="https://www.benzinga.com/24/11/42144540/dea-slammed-over-unlawful-talks-with-cannabis-opponents-the-plot-thickens">unlawful conversations</a> with anti-cannabis groups ahead of the December 2 hearing.
<ul>
<li>Read Next: <a href="https://www.benzinga.com/markets/cannabis/24/11/42093641/dea-is-compromised-doj-should-replace-it-in-cannabis-rescheduling-claims-joint-motion">DEA Is Compromised, DOJ Should Replace It In Cannabis Rescheduling, Claims Joint Motion</a></li>
</ul>
Cover: AI generated image

DEA Judge Blocks Researcher's Motion In Cannabis Rescheduling Case

The <a href="https://www.benzinga.com/topic/dea">Drug Enforcement Administration </a>(DEA) has been barred from conducting random searches of travelers&#8217; belongings at airports and transit hubs following a Justice Department investigation that exposed corrupt practices. The investigation, led by Inspector General Michael Horowitz, uncovered failures to properly document searches, potential racial profiling and questionable partnerships with airline employees. 
One airline worker reportedly received tens of thousands of dollars over several years as a kickback for flagging passengers based on travel patterns, such as purchasing last-minute tickets. 
"The DOJ Office of the Inspector General (OIG) found that the DEA has repeatedly failed to comply with its own policies, creating significant operational and legal risks," according to the <a href="https://oig.justice.gov/news/doj-oig-releases-management-alert-identifying-concerns-deas-transportation-interdiction">report</a>.
Read Also: <a href="https://www.benzinga.com/markets/cannabis/23/07/33156524/dea-turns-50-unveiling-the-ineffectiveness-of-the-ongoing-war-on-drugs-now-what">$1 Trillion And 50 Years Later, Is The DEA&#8217;s War On Drugs A Failure?</a>
The decision to suspend the searches was issued on November 12 by the deputy attorney general after reviewing the draft report. The Justice Department's memo restricts DEA agents from engaging in consensual encounters at transit locations unless tied to active investigations or approved under special circumstances.
<h2 class="wp-block-heading">Systemic Corruption</h2>
The report follows a widely circulated video released by the <a href="https://ij.org/press-release/department-of-justice-suspends-controversial-airport-interdictions-after-viral-footage-showing-dea-agents-threatening-abusing-innocent-traveler/">Institute for Justice</a> (IJ), a nonprofit civil rights organization. One case cited in the memo involved a traveler approached by a DEA Task Force Officer at an airport. The video shows a traveler, identified as David C., refusing to consent to a search at an airport. Despite his objections, agents took his backpack, claimed a drug-detection dog alerted them and conducted the search, which yielded no illegal items. The delay, which caused David to miss his flight, resulted in widespread public criticism.
Further investigation revealed systemic issues. The DEA rarely documents its searches unless they result in seizures or arrests, making it impossible to determine how many travelers have been impacted. In one case, musician Brian Moore had $8,500 seized at an airport, money intended for a music video project. He was never charged with a crime but spent a year and $15,000 in legal fees to recover his funds. Moore said the experience ruined his music career.
A 2016 <a href="https://www.usatoday.com/story/news/2016/08/10/dea-travel-record-airport-seizures/88474282/">USA Today investigation</a> found that DEA agents seized over $209 million from more than 5,200 travelers at 15 major airports over a decade, with most funds shared with local police. Critics argue these practices incentivize unconstitutional searches for profit.
The Institute for Justice has since sued the DEA and TSA, advocating for legislation to eliminate these financial incentives. The DEA has yet to respond to the findings.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/24/08/40586896/dea-can-still-make-cannabis-arrests-in-legal-weed-states-like-ohio-but-its-not-our-goal">DEA Can Still Make Cannabis Arrests In Legal Weed States Like Ohio, But It&#8217;s Not &#8216;Our Goal&#8217;</a></li>
</ul>
Photo: Courtesy of DEA

DEA Banned From Random Airport Searches After Scathing Justice Department Report Uncovers Corruption

For the first time in years, the U.S. is witnessing a sustained decline in overdose deaths. Federal data reveals a 14.5% drop in fatalities over 12 months ending June 2024, marking a significant shift after years of grim records. Experts attribute the change to a combination of expanded <a href="https://www.benzinga.com/markets/cannabis/24/06/39470316/un-health-officials-new-report-calls-for-end-to-drug-war-harm-reduction-scientific-approach-to-d">harm reduction</a> efforts, increased accessibility to treatment and changes in the illicit drug supply itself.
<h3 class="wp-block-heading">Drivers Behind Decline In Overdose Deaths </h3>
According to a recent <a href="https://www.nytimes.com/2024/11/21/health/overdose-deaths-decline-drug-supply.html">article</a> in The New York Times, weakened fentanyl potency has played a critical role. Anne Milgram, head of the Drug Enforcement Administration (DEA), <a href="https://www.dea.gov/press-releases/2024/11/15/deas-third-annual-national-family-summit-fentanyl-highlights-progress">announced</a> a decline in fentanyl potency for the first time since 2021. The DEA linked this shift to crackdowns on Mexican cartels and international supply chains.
Another notable factor is evolving drug use behavior. Increasingly, users are smoking or snorting fentanyl to avoid necrotic wounds caused by xylazine, <a href="https://www.benzinga.com/markets/cannabis/23/04/31788751/biden-administration-calls-fentanyl-laced-with-xylazine-emerging-threat-what-now">an animal tranquilizer often mixed with fentanyl</a>. This shift, though not necessarily safer, reflects growing awareness of harm reduction messaging.
<h3 class="wp-block-heading">Combating Overdoses With A Pragmatic Approach</h3>
Harm reduction programs, such as <a href="https://www.benzinga.com/markets/cannabis/23/03/31549189/fda-approves-over-the-counter-sale-of-opioid-reversal-drug-narcan">wider distribution of naloxone</a> (Narcan), fentanyl test strips and syringe exchanges, have further contributed to the decline.
Additionally, more states now prescribe medications to suppress opioid cravings. Programs providing sterile syringes and community education further empower users to <a href="https://www.benzinga.com/markets/cannabis/24/07/39912563/exclusive-this-new-harm-reduction-group-wants-home-testing-kits-available-for-all-drugs">take precautions</a> against <a href="https://www.benzinga.com/markets/cannabis/24/09/40990399/fentanyl-laced-with-toxic-chemical-btmps-raises-alarms-nationwide-experts-warn-of-danger">dangerous adulterants</a>.
<h3 class="wp-block-heading">Racial Disparities In Overdose Deaths Death Rise</h3>
However, while these developments are promising, <a href="https://www.benzinga.com/markets/cannabis/24/11/41829368/overdose-crisis-in-shadows-of-elections-as-black-indigenous-americans-deaths-rise">overdose death rates among Black and Indigenous Americans are still rising</a>. Limited access to public health services in marginalized communities underscores a growing racial disparity.&nbsp;
<ul>
<li>Get Benzinga&#8217;s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter <a href="https://newsletteremail.benzinga.com/subscribe">here</a>. If you&#8217;re serious about the business, you can&#8217;t afford to miss out.</li>
</ul>
Eastern and Midwestern states have seen sharper declines, possibly due to more seasoned responses to fentanyl. In contrast, overdose deaths are still rising in some Western states where fentanyl arrived later.
Read Also: <a href="https://www.benzinga.com/markets/cannabis/24/11/41829368/overdose-crisis-in-shadows-of-elections-as-black-indigenous-americans-deaths-rise">Overdose Crisis In Shadows Of Elections As Black, Indigenous Americans Deaths Rise</a>
<h3 class="wp-block-heading">Communities Still Struggling With Ongoing Crisis</h3>
Despite the progress, policymakers caution against complacency as fatalities remain alarmingly high, with overdose deaths exceeding 97,000 in 2024. "There are entire communities that are not seeing that progress. Many families continue to be impacted by it every day," said Dr. Allison Arwady of the Centers for Disease Control and Prevention (CDC), according to The NY Times.
As the U.S. continues to grapple with the overdose crisis, experts stress the need for sustained prevention efforts and addressing systemic disparities in access to treatment and resources.
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US Overdose Deaths Decline As Fentanyl Potency Weakens, Harm Reduction Expands

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Easterly Government Properties Acquires 100,000 Leased Square Foot Facility; Amount Not Disclosed

Village Farms International, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VFF#NASDAQ">VFF</a>) and Hemp for Victory filed a joint motion seeking to disqualify the Drug Enforcement Administration (DEA) from defending the proposed rescheduling of marijuana from Schedule I to Schedule III under the Controlled Substances Act.
The parties argue that the DEA is compromised and opposes the rescheduling, suggesting its role should be taken by the Department of Justice (DOJ) to ensure an impartial process.
"It is our belief that the DEA cannot lawfully act as the proponent of the Proposed Rule and that its actions throughout the administrative process demonstrate that it opposes the proposed transfer of marijuana to Schedule III and is therefore compromised," Shane Pennington, partner at Porter Wright Morris &amp; Arthur, LLP and counsel to Village Farms and Hemp for Victory commented, "Treating the DEA as the proponent of the Proposed Rule would violate APA and DEA regulations and render these proceedings a sham. Lawyers from the Department of Justice, not the Drug Enforcement Administration, must therefore defend this rule."
In August 2023, Health and Human Services (HHS) Secretary Xavier Becerra confirmed his agency responded to President Biden&#8217;s directive to provide scheduling recommendations for cannabis to the DEA. HHS <a href="https://www.benzinga.com/markets/cannabis/23/08/34126690/hhs-secretary-confirms-it-is-recommending-cannabis-be-rescheduled-per-bidens-directive">called for marijuana to be reclassified as a Schedule III drug</a> under the Controlled Substances Act.
The <a href="https://villagefarms.com/wp-content/uploads/2024/11/Hemp-for-Victory-and-Village-Farms-Motion-to-Disqualify-and-Supplement-Record-with-Exhibits-A-C.pdf">motion</a> argues that "Not once in its history as an agency had DEA ever rejected an HHS scheduling recommendation. This time, however, DEA did not just disagree with HHS's views, it opposed them so vehemently that the Attorney General had to refer the interagency dispute to the Office of Legal Counsel for resolution."
Read Also: <a href="https://www.benzinga.com/general/health-care/24/11/42077935/trump-picks-dr-oz-who-says-seniors-should-give-medical-marijuana-a-try-to-lead-centers-for-medicare-and-medicaid-services">Trump Picks Dr. Oz, Who Says Seniors Should Give Medical Marijuana A Try, To Lead Centers For Medicare And Medicaid Services</a>
Get Benzinga's exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter <a href="https://newsletteremail.benzinga.com/subscribe" target="_blank" rel="noreferrer noopener">here</a>. If you're serious about the business, you can't afford to miss out.
<h2 class="wp-block-heading">Calling For Transparency</h2>
The motion also asks that the record include all requests for hearing and/or participation in these proceedings filed with the DEA; a record of the decisions made by the Administrator regarding why certain parties were designated as participants and others were not; and any ex parte communications between DEA and third parties.
"Without knowing who DEA excluded and why, there is no way to assess whether and to what extent the Agency's decisions are arbitrary and capricious, the subject of bias, or otherwise unlawful," reads the filing. "If, for example, DEA included parties with expertise on a particular topic but only if they opposed the Proposed Rule while also excluding parties with even more expertise on that same topic if they supported the Proposed Rule, then there would be a powerful case to be made that the Agency's decisions were arbitrary and capricious."
Among 25 participants that DEA chose to join the hearing on rescheduling cannabis is Smart Approaches To Marijuana (SAM), an organization opposed to marijuana legalization and commercialization. On the other hand, Village Farms is <a href="https://www.benzinga.com/markets/cannabis/24/11/41726679/village-farms-is-only-cannabis-operator-selected-to-represent-weed-industry-at-dea-rescheduling-">the only cannabis operator selected to represent cannabis industry</a>.
Village Farms and Hemp for Victory also require that SAM and the DEA be ordered to preserve their records, as factual evidence demonstrates unlawful conduct which has further compromised the DEA's participation in the proceedings.
Michael DeGiglio, retired Navy captain and naval aviator and president and chief executive officer of Village Farms concluded, "Our organization embraces the power of the cannabis plant as an alternative to Big Pharma and harmful, addicting drugs like opioids. However, we continue to face burdensome challenges in several of our regulatory jurisdictions that not only restrict us from advancing access to cannabis for millions of people, but have also created near-insurmountable institutional barriers to clinical research involving cannabis. We are proud to be one of the pro-cannabis participants selected to testify as a witness in the upcoming Rescheduling Hearing, but the filing of this joint motion reflects our desire for a more transparent process that ensures all credible voices are heard, including other applicants whose expertise has been overlooked or ignored."
<h2 class="wp-block-heading">DEA Under Attack</h2>
The motion follows a lawsuit by a Washington-based researcher filing a <a href="https://www.benzinga.com/news/legal/24/11/41923948/dea-faces-lawsuit-alleging-bias-in-marijuana-rescheduling-process">lawsuit against the DEA alleging multiple legal violations</a> in the agency&#8217;s process of <a href="https://www.benzinga.com/topic/cannabis-rescheduling" target="_blank" rel="noreferrer noopener">rescheduling marijuana</a>. David Heldreth, CEO of psychedelic research firm Panacea Plant Sciences, claims the DEA&#8217;s recent actions violate federal law and constitutional principles. Despite submitting a request to participate in the hearings, Heldreth&#8217;s company, Panacea Plant Sciences, was excluded from the list of 25 participants chosen by Milgram. This exclusion is at the heart of Heldreth&#8217;s lawsuit, which accuses the DEA of bias and of sidelining critical voices in favor of larger, established players in the industry.
Moreover, the Veterans Action Council (VAC), a cannabis advocacy organization for military vets, <a href="http://drugsense.org/temp/VACXPRESSXXRELEASE_X14XNovemberXX2024.pdf?fbclid=IwZXh0bgNhZW0CMTAAAR1wzl2RC2z5p-kEiG9p4J03gHKGhie0JyDYxWJx3SdVSeDA7a_6WeEXL3Y_aem_ANUFL62rwPZ-jy58Hyw9-A" target="_blank" rel="noreferrer noopener">filed a petition</a> also <a href="https://www.benzinga.com/news/legal/24/11/42068859/veterans-group-challenges-dea-for-seat-at-cannabis-debate-table">challenging its exclusion</a> from the DEA&#8217;s participant list. VAC contends that the DEA failed to meet its obligation to include all interested parties. &#8220;The DEA was tasked with putting forward a group of ‘interested parties.&#8217; They failed to do so, as illustrated by the judge&#8217;s recent order,&#8221; said VAC&#8217;s Michael Krawitz.
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Photo: Courtesy of RazorMax and ganjaspliffstoreuk to Pixabay

DEA Is Compromised, DOJ Should Replace It In Cannabis Rescheduling, Claims Joint Motion

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Easterly Government Properties Acquires 99,246 SF Facility Adjacent to Wright-Patterson Air Force Base and Occupied by Northrop Grumman Systems Corporation

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