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February 23.2026
2 Minutes Read

Corporate Interests vs. Grassroots: The Battle for Cannabis Equity

Smiling woman on city rooftop, bright daylight.

The Hidden Costs of Corporate Influence in Cannabis

The cannabis industry is experiencing rapid growth in the U.S., but as highlighted by Griffen Basden on the Karma Koala Podcast, this expansion comes with its share of political and regulatory challenges. The intricate dance of legislative capture often favors corporate giants at the expense of grassroots entrepreneurs, threatening the very spirit of the industry. As we navigate this evolving landscape, it’s essential to understand how political interests shape market opportunities.

Exploring the Regulatory Landscape

Regulatory frameworks governing cannabis have been touted as models of equity and opportunity. New York's Marihuana Regulation and Taxation Act, designed to prioritize equity and justice, has come under scrutiny as corporate influence starts to shape outcomes. Legal experts argue that while laws aim to dismantle barriers for historically marginalized communities, large corporations leverage lobbying power to manipulate these regulations to their advantage. This raises a critical question: Are we witnessing a return to a new form of feudalism where wealth dictates access and opportunity?

Dismantling the Stigmas

Despite overwhelming evidence supporting cannabis's therapeutic benefits, significant cultural biases persist. The perception that cannabis is merely for recreational use rather than a legitimate medicinal resource stifles progress. The battle for legalization should not only focus on legal frameworks but also on altering public perception. Educating stakeholders about safe practices and the medicinal value of cannabis can help dissolve prejudices, as Kim Anzarut highlights in her discussions of the barriers to acceptance.

Empowering Local Entrepreneurs

Local entrepreneurs often struggle to access the cannabis market due to bureaucratic hurdles erected by well-funded competitors. As Basden argues, the legislative landscape must underscore long-term support for those who have been most affected by prohibition. By prioritizing pathways for small businesses, particularly those owned by individuals from impacted communities, states can reshape the cannabis market into one that reflects true equity.

Innovative Practices to Build Trust

Building trust within the broader community is essential for the cannabis industry's reputation. Implementing Good Manufacturing Practices (cGMP) and other safety standards can not only ensure product safety but also appeal to “the squares” — policymakers and healthcare professionals critical for broader acceptance. When businesses demonstrate commitment to safety and quality, they not only protect their consumers but also enhance their legitimacy in an industry still plagued by skepticism.

Future Predictions: A Call for Accountability

The future of the cannabis industry depends on our ability to hold corporate interests accountable. Grassroots movements and the upfront policies supporting small businesses must gain momentum. As the industry matures, consumers and advocates must demand transparency and equity in all regulatory matters. This proactive approach will empower a new generation of entrepreneurs and safeguard the interests of communities devastated by the war on drugs.

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The Tragic Murder in California's Cannabis Industry: A Complex Narrative

Update The Dark Side of California's Cannabis Industry In October 2019, the tranquil beauty of Santa Cruz was shattered when tech executive Tushar Atre was found murdered, execution-style, on his property. A promising figure in California's burgeoning cannabis sector, Atre’s life was cut short amid a backdrop of ambition, innovation, and crime. His tragic story highlights the murky waters that exist between the legal and illegal aspects of cannabis trade in the United States. According to investigative journalist Scott Eden, who chronicles Atre's tale in his book A Killing in Cannabis, the tension within this industry has profound implications for entrepreneurs trying to navigate a landscape that has often favored criminal elements over lawful business operations. Eden asserts, "The black market exists only because we decided that this form of trade should be illegal," highlighting a fundamental issue: the flawed legal framework surrounding cannabis in America. The Consequences of Ambiguity in Legislation The cannabis industry in California, despite being one of the first to legalize recreational use, has faced significant challenges. Eden discusses how most cannabis founders have struggled economically, which continues to foster a black market that some have turned to out of sheer necessity. The ongoing struggle between legality and illicit practices creates a breeding ground for violence and exploitation. For example, many entrepreneurs like Atre sought to participate in the industry to challenge stereotypes and innovate. However, many others—driven by profit—allow themselves to become entangled with dubious figures and practices. Eden's narrative serves as a cautionary tale, illustrating how ambition can lead one down dangerous paths. A Cautionary Tale for Future Innovators The death of Tushar Atre is a stark reminder of the potential perils lurking within the cannabis industry, particularly for those unprepared to face its darker sides. His story resonates with many who are drawn to California for the promise of opportunity only to find themselves unprepared for the risks that accompany those dreams. As the U.S. navigates the challenges of cannabis legalization, stories like Atre’s question whether the current approach sufficiently safeguards budding entrepreneurs and whether new regulations to address these issues truly reflect the reality of the market. This narrative underscores an urgent need for thoughtful legislation and robust support systems for those navigating this complicated landscape. Join the Discussion The complexities surrounding cannabis law are only beginning to unfold, and discussions about how to create a safer, more equitable industry are essential. Scott Eden’s insights into Tushar Atre’s life and demise offer a lens through which to view the immense challenges ahead, reminding us of the importance of fair practices, open dialogue, and responsible legislation. To explore more about how California’s cannabis journey intersects with opportunity, risk, and the shadows of the black market, listen to Scott Eden’s podcast episode and engage with the wider conversation.

Marijuana Businesses Beware: Internal Revenue Code Section 280E Challenges

Update The Growing Marijuana Industry and Its Federal Tax Challenges As the marijuana industry continues to expand across the United States, traditional expectations of business operations encounter glaring discrepancies. With an estimated $23.9 billion for adult-use marijuana and $7.6 billion for medical cannabis sales reported in 2025, the market is projected to top $39.1 billion by 2029. This significant growth has been propelled by numerous states that have eased restrictions surrounding both medical and recreational marijuana use. However, despite this positive trajectory, marijuana businesses are still grappling with burdensome tax laws that stem from federal regulations. Understanding Internal Revenue Code Section 280E At the center of this issue lies Internal Revenue Code (IRC) Section 280E, which is particularly punitive for marijuana businesses. Under this provision, businesses engaged in trafficking controlled substances cannot take notable deductions or credits. This reflects the federal government’s enduring classification of marijuana as a Schedule I controlled substance under the Controlled Substances Act (CSA). It's a complex and often frustrating scenario for entrepreneurs who are navigating a legal marijuana marketplace on the state level while being shackled by federal classification. Implications of 280E on Marijuana Businesses The prohibition on deductions means that, unlike most businesses, marijuana companies must report their gross income without offsetting expenses. They cannot deduct costs that many other industries take for granted, leading to significantly higher tax liabilities. While businesses can deduct the cost of goods sold (COGS), the limitations imposed by 280E mean that effective tax rates for marijuana businesses can soar as high as 70% or more in some cases. This financial burden can hinder expansion and operational effectiveness, raising the costs of consumer products despite strong demand. Current Legislative Climate: A Potential Shift? Interestingly, discussions on reform are emerging with numerous legislative proposals aimed at altering the restrictive measures of Section 280E. These proposals primarily focus on rescheduling or descheduling marijuana and could provide tailored exceptions for marijuana businesses. There is also a growing public sentiment advocating for reform, with many citizens and politicians recognizing the imbalance in how marijuana businesses are taxed compared to other industries. Constitutional Dilemmas and Challenges Unfortunately, historical challenges against the application of Section 280E have been largely unsuccessful. Efforts to legally dispute the constitutionality of Section 280E underscore broader issues regarding the powers of Congress and states, especially when it comes to the evolving consensus around marijuana use. As advocates push for reform, the reliance on constitutional arguments raises critical questions about the future of marijuana taxation and legalization. What Lies Ahead for Cannabis Businesses? The tension between federal law and state regulations surrounding marijuana use and business operations is likely to create ongoing challenges for the industry. However, if moved forward, proposed changes to federal policies will pave the way for marijuana businesses to thrive without the crippling tax constraints imposed by Section 280E. It remains to be seen how the legal landscape will evolve as advocates remain diligent in their quest for more equitable tax treatment.

What Stagnation in Federal Psychedelics Efforts Means for Advocates

Update The State of Psychedelics: Stagnation and Hope The federal government's exploration of psychedelics has made headlines over the past few years, particularly after President Trump assumed office in 2025. Under Secretary of Health and Human Services, Robert F. Kennedy Jr., there was optimism that psychedelics could soon be accessible for therapeutic use, especially amidst the rising tide of mental health issues. Disappointing Progress: Advocacy Groups Speak Out As we approach the two-year mark of the Trump administration, a palpable sense of disappointment pervades the psychedelics community. Advocates were initially hopeful that Kennedy's leadership would usher in swift regulatory changes; however, the current landscape remains frustratingly unchanged. Psychedelic executives and advocacy groups have criticized the lack of concrete strategies and action from federal agencies. Recent discussions among lawmakers, including U.S. Representatives Lou Correa and Jack Bergman, reveal a growing concern about the risk-averse nature of Congress when approaching the topic of psychedelics. Perspectives from industry insiders suggest that legislative inertia could derail progress, particularly as urgent calls from groups like The Mission Within advocate for veterans' access to psychedelic therapies. FDA Insights: Application Volume Increases Interestingly, while legislative movement appears stagnant, a surge in psychedelic drug applications has been noted by the FDA. Director Tiffany Farchione has indicated that her workload has ballooned due to the influx of investigational new drug applications. This points to ongoing interest and research in the field, potentially laying a groundwork for future accessibility. Moreover, Nora Volkow, director of the National Institute on Drug Abuse, has highlighted the transformative potential of psychedelics in mental health treatment. Her endorsement reflects an increasing acknowledgment of the necessity for innovative solutions in psychiatry. The Federal and State Dynamics of Psychedelic Regulation The complexity surrounding federal psychedelic regulation is mirrored by experiences in cannabis law. As observed by experts during a recent panel at the UC Berkeley Center for Law & Technology, federal scheduling often hampers access—even when states have taken progressive steps toward legalization. This phenomenon has implications for psychedelics as advocates must navigate both federal and state landscapes that don’t always align. Despite a lack of federal progress, some states have begun decriminalizing and regulating psilocybin services, paving a way for broader access that could inspire federal reforms. This “laboratories of democracy” model allows states like Oregon and Colorado to test new frameworks, demonstrating that local reform could eventually trigger federal changes. Exploring the Future of Psychedelic Policies Projecting forward, many anticipate that state-level actions will continue steering federal reforms, mirroring patterns seen with cannabis. Experts posit a dual approach could emerge: one focusing on federal approval for specific medical uses and another championing broader adult use and personal cultivation rights. The recognition that diverse populations may require varying solutions is crucial as we advance toward a more inclusive and thoughtful psychedelic policy landscape. As we reflect on the current state of psychedelics, it's clear that while the road has many challenges, there is also a glimmer of hope—an opportunity for advocates and policymakers to foster a dialogue that prioritizes mental health and substance safety.

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