Are Adult-Use Cannabis Programs at Risk in 2026?
Are we heading toward more cannabis reform… or more resistance? In the latest Trade Black podcast, Shadd Dales and Anthony Varrell discuss the latest headlines, including Virginia’s bill, and the House blocking regulated marijuana sales. Flowhub CEO Kyle Sherman joins the hosts to preview the upcoming second episode of Flowhub’s Great American Dispensary Tour. Kyle offers a sneak peek at the Maryland market.
Kicking off, we dive into federal cannabis rescheduling and latest developments concerning President Trump’s executive order signed last month. While the administration pushes forward, several GOP senators have filed an amendment aimed at blocking the rescheduling effort — adding another layer of uncertainty to an already complex process.
Despite GOP resistance, language that would have blocked rescheduling was removed. The DEA now has the option to cancel the existing ALJ hearing and issue a final rule, potentially under the direction of AG Pam Bondi. We dive into House-passed legislation that continues to block Washington, D.C. from launching regulated marijuana sales — a reminder that progress remains uneven depending on the market.
At the state level, Virginia introduced a bill to open adult-use sales on November 1, 2026. The bill includes provisions for increased possession limits, an 11.625% tax, and a controversial $10 million conversion fee for existing medical operators. While some criticize the bill’s complexity, it’s a strong next step in establishing a full adult-use market.
In the second segment, Flowhub CEO Kyle Sherman joins the show for his weekly update, previewing the upcoming second episode of Flowhub’s Great American Dispensary Tour. Sherman offers a sneak peek at the Maryland market, a state that has seen rapid growth since going fully adult-use in July 2023 and generating more than $800 million in its first full year.
Sherman shares insight on the influx of new talent into the cannabis sector, especially from tech. Unlike earlier waves of CPG and alcohol execs, this new group brings a startup mindset that’s more adaptable to the fragmented, state-by-state nature of cannabis. Sherman emphasizes the importance of humility and industry-specific learning for success in this space.
He also previews Flowhub’s upcoming content around the Maryland market, where just 100 stores serve the entire state, resulting in high average monthly sales and flower prices. He likens cross-state operations to managing businesses in separate countries, reinforcing the need for integrated compliance tools.
The conversation wraps with generational shifts in substance use and open vs. limited license markets, citing examples from Oklahoma, Maryland, and Canada. Hear our thoughts when you listen in.
