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Gaetz Is Out, Pam Bondi Is In. What Happens To Cannabis?

By Shadd Dales On Nov 22, 2024

Friday’s TDR Trade to Black podcast digs deep into the latest political headlines and how they’ll impact the cannabis industry with Shadd Dales, Anthony Varrell, and GUAP. Matt Gaetz has withdrawn his name for Attorney General amid the ethics report controversy, and Pam Bondi will be stepping into the role, but now the outlook for cannabis isn’t nearly as favorable. Also, upcoming ALJ hearing on rescheduling may be impacted by allegations of backchannel communications with anti-cannabis advocates. SAFE Banking progress looks increasingly doubtful in the lame-duck session, and Texas AG Ken Paxton has sparked more outrage by adding Dallas to the list of cities being sued over marijuana decriminalization measures.

This week, Matt Gaetz withdrew his name in light of the continued pushback following a federal sex trafficking investigation involving him. Within hours, Donald Trump named Pam Bondi to replace Gaetz as his US attorney general pick. Pam Bondi is both a longtime ally of Trump and the former AG of the state of Florida. Unlike Gaetz, however, Bondi’s opinion of cannabis reform is considerably less positive, especially since she opposed smokable cannabis in Florida in 2016. Bondi’s appointment doesn’t negate potential for progress, but skepticism remains.

The upcoming Administrative Law Judge (ALJ) hearing must address allegations of improper communications between the Drug Enforcement Agency (DEA) and the prohibitionist group Smart Approaches to Marijuana (SAM). The judge, John Mulroony, was responding to a motion filed by cannabis organizations that disputes the DEA’s role as “proponent,” suggesting that these communications indicate bias. Both the DEA and SAM must respond to allegations by November 25.

Hope is dimming for SAFE Banking as an avenue for cannabis reform. Among some of the many pieces of legislation being pushed for in cannabis reform, SAFE Banking is one of the most crucial for small operators and social equity applicants, since larger companies have access to banking services. Advocates continue to lobby for its passage during the lame-duck session, but the political hurdles are significant.

Attorney General Ken Paxton has filed a lawsuit to overturn Dallas’s marijuana decriminalization ordinance, the “Dallas Freedom Act” (Proposition R) despite overwhelming voter support. Dallas’ Proposition R prohibited police from arresting citizens or issuing citations for possession of four ounces or less. Paxton has sued other cities for similar decriminalization legislation, saying that the Texas Local Government Code forbids them from enacting “a policy under which the entity will not fully enforce laws relating to drugs.”

Catch the full discussion of the headlines in the podcast.

Shadd Dales

Shadd Dales is the Founder and President of The Dales Report and has an extensive background in the business media industry.

His work translates into over 15 years in mainstream media that included roles with BNN Bloomberg, CTV Properties and the iHeart Radio Network.

Shadd is considered one of the leading on air talents in both the cannabis and psychedelic space and has interviewed some of the most notable CEO names in the industry.

Shadd’s vision is to establish a content platform that is equivalent to a mainstream broadcast produced in a format that is relevant for today’s investor.