Anti-Cannabis Groups Sue to Block Federal Rescheduling as Lawmakers Weigh Banking and Legalization

/ TOP STORIES Smart Approaches to Marijuana and the National Drug and Alcohol Screening Association sued to reverse the DOJ's cannabis rescheduling decision, represented by a firm where former Attorney General William Barr is a partner. Senate Banking Committee Chairman Tim Scott (R-SC) called cannabis industry banking access a "quandary," saying: "Congress is going to have to make it legal, because today even though the president has declassified it or reduced its impact, the truth is it is still illegal." The Pennsylvania Senate Law & Justice Committee approved an amended bill creating a Cannabis Control Board to oversee medical marijuana, hemp, and potentially recreational cannabis. A South Carolina Republican senator declared "medical marijuana is now legal" in the state following federal rescheduling; gubernatorial candidate Rep. Ralph Norman (R-SC) called it a "gateway drug" and said he has a "problem with marijuana." North Carolina senators filed a bill to put personal and medical marijuana legalization on the November ballot. Marijuana reform groups urged Virginia Gov. Abigail Spanberger (D) not to veto a recreational cannabis sales bill after lawmakers rejected her amendments. / FEDERAL The DEA promoted a study linking teen marijuana use to slower development of memory, focus, and thinking speed. Sen. Rand Paul (R-KY) backed his Hemp Safety Enforcement Act, which would grant states authority to regulate hemp-derived THC, ban synthetic cannabinoids, and protect the $28 billion hemp market from cartels. Rep. Brian Mast (R-FL) called for passage of the Veterans Equal Access Act following DOJ's reclassification. / STATES Connecticut lawmakers sent Gov. Ned Lamont (D) a bill raising THC caps on cannabis beverages. The Massachusetts Supreme Judicial Court heard arguments on blocking a marijuana legalization rollback initiative from November's ballot. Nevada filed proposed cannabis rule changes. Colorado published guidance on federal rescheduling. Illinois extended the operational deadline for craft cannabis growers. / INTERNATIONAL The Bahamas' top cannabis regulator said the country's marijuana business licensing platform is ready to launch. / SCIENCE & HEALTH A study found prenatal cannabis exposure alone or combined with tobacco was not linked to disrupted cognitive or language development in high-risk children's first three years. A chicken study identified CBD as a promising treatment against infectious bronchitis virus. / BUSINESS Cresco Labs, Green Thumb Industries, Verano Holdings, and Curaleaf face class action litigation over alleged false medical product claims. Nabis is acquiring Hudson Distribution Services' New Jersey cannabis distribution license and warehouse. Curaleaf Holdings reported Q1 net revenue of $324.2 million. Rhode Island retailers sold $29.5 million in legal cannabis in Q1 2026.