Gretchen On What Investors Should Know About States 2.0
In this packed episode, hosts Shadd Dales and Anthony Varrell bring back industry advocate Gretchen Gailey to unpack two newly refiled cannabis bills: the States Reform Act (States 2.0) and the PREPARE Act. With cannabis stocks whipsawing in the markets and pressure building from both the grassroots and major stakeholders, the episode delivers a no-nonsense assessment of where momentum must shift if federal reform is to succeed.
Gretchen emphasizes that for progress, the cannabis industry must stop “singing to the choir” by lobbying Democrats and instead focus entirely on Republicans, particularly those in the Senate. Senators Thom Tillis and John Cornyn are critical targets and there is a need for companion legislation to emerge on the Senate side.
The States Act, backed by Representatives Dave Joyce, Dina Titus, and Max Miller, provides a path to eliminate 280E tax penalties, supports interstate commerce, and reframes cannabis as a state-controlled issue. Notably, it offers advantages over the SAFE Act by addressing foundational legal disparities rather than just banking access. The PREPARE Act, co-sponsored by Hakeem Jeffries and Dave Joyce, mandates that the federal government begin designing a regulatory framework for potential federal legalization. The idea is to avoid a repeat of the regulatory chaos that’s plagued some state markets, like New York’s.
Gretchen is direct about the industry’s bad habits—complaining, splintering, and failing to align on strategy. Next week’s “Unity Week,” organized by the Last Prisoner Project, will bring dozens of advocacy groups to DC. Gretchen hopes participants will be tactical.
Anthony and Gretchen dive into the hot-button topic of interstate cannabis commerce, with Anthony favoring a free market that rewards efficiency and drives down prices. Gretchen warns that states likely can’t block transport, though they can ban sales—setting the stage for a fragmented rollout. On intoxicating hemp products, both agree these should be phased out in favor of a unified regulatory framework.
This and more in this episode.
