California’s cannabis industry is already navigating a minefield of challenges, but the recent wildfires in Los Angeles County just added another brutal layer to the struggle. Smoke damage, power outages, and supply chain breakdowns pushed the disaster to the top of Cannabis Business Times’ (CBT) most-read stories in January. Meanwhile, a new twist in the federal cannabis rescheduling battle and a push for legalization in Wisconsin also dominated headlines.
Wildfires Wreak Havoc on California’s Cannabis Industry
For cannabis businesses in Los Angeles County, January started with chaos. The wildfires that tore through the region didn’t just scorch the landscape—they upended the local cannabis market.
“I’ve lived in LA for 39 years, and I’ve seen my share of natural disasters, but this is as close to Armageddon as I’ve ever seen,” Ian Rassman, executive director of Los Angeles NORML, told CBT contributor David Silverberg.
The damage didn’t stop with the flames. Even businesses outside the direct path of the fires felt the impact:
- Smoke contamination raised concerns about product safety and potential recalls.
- Power outages left growers scrambling to keep climate-controlled facilities running.
- Uncertainty about disaster relief eligibility created confusion among operators.
With the industry already under strain from high taxes and strict regulations, the wildfires made an already fragile situation even worse.
DEA’s Cannabis Rescheduling Battle Takes a New Turn
The fight over federal cannabis rescheduling took another dramatic turn in January, with new ex parte communication claims throwing the process into turmoil. The Drug Enforcement Administration (DEA) is now facing an interlocutory appeal, delaying the hearing by at least 90 days.
At the heart of the dispute is whether the DEA improperly communicated with opponents of rescheduling behind closed doors. Pro-cannabis advocates argue that these interactions could bias the agency’s decision-making process, while the DEA insists it has done nothing wrong.
For now, the delay adds another layer of uncertainty to an already complex issue. If the appeal fails, advocates plan to take their case even higher, setting the stage for a prolonged legal battle.
Wisconsin Governor Pushes for Cannabis Legalization Vote
Wisconsin remains one of the last states without a legal medical cannabis program, and Democratic Governor Tony Evers is trying to change that. His latest move? Proposing a citizen-initiated ballot measure to let voters decide on legalization.
The idea faces an uphill battle in the state’s GOP-controlled Legislature, which has repeatedly blocked cannabis reform efforts. But with growing public support and neighboring states moving forward with legalization, the pressure is mounting.
If Evers’ proposal gains traction, it could give Wisconsinites a direct say in the issue—something many advocates believe is long overdue.
Federal Court Backs Virginia’s Strict Hemp Regulations
In another major legal decision, a federal court ruled that Virginia’s total THC hemp regulations take precedence over the 2018 Farm Bill. This means the state can enforce its own restrictions on hemp-derived products, even if federal law suggests otherwise.
The ruling is significant for the hemp industry, particularly businesses that rely on selling products with THC levels near the legal limit. Some see it as a blow to hemp entrepreneurs, while others argue it reinforces consumer safety standards. Either way, it sets a precedent that could influence similar cases in other states.
Michigan Cannabis Processor Under Fire Again
Sky Labs, a Michigan-based cannabis processor, found itself in hot water once more after regulators accused the company of possessing over 2,000 pounds of hemp-derived THCA isolate. The Michigan Cannabis Regulatory Agency’s complaint also cited missing Certificates of Analysis (COAs) and allegations of mixing untested isolate with distillate.
This isn’t the first time Sky Labs has faced scrutiny. The company has been under the microscope for previous regulatory issues, and this latest development raises fresh concerns about compliance enforcement in the state’s cannabis market.
The Most Popular Cannabis Strains in California
On a lighter note, California’s best-selling cannabis strains of 2024 were revealed, and one cultivar came out on top yet again. With 37% of consumers saying it helps with stress, the reigning champion continues to dominate dispensary shelves.
Top strains often reflect broader market trends, with demand shifting based on consumer preferences and marketing efforts. The full list provides insight into what’s driving sales in the nation’s largest cannabis market.
What’s Next for Cannabis in 2025?
With wildfires, legal battles, and regulatory shifts dominating headlines, the cannabis industry enters 2025 with more questions than answers. The next few months could bring clarity—or more complications—as key decisions play out on both state and federal levels.
For businesses, staying agile and informed will be critical. And for consumers, the ongoing fight for accessibility and regulation continues to shape the future of legal cannabis across the U.S.
Maria Garcia is an award-winning author who excels in creating engaging cannabis-centric articles that captivate audiences. Her versatile writing style allows her to cover a wide range of topics within the cannabis space, from advocacy and social justice to product reviews and lifestyle features. Maria’s dedication to promoting education and awareness about cannabis shines through in her thoughtfully curated content that resonates with both seasoned enthusiasts and newcomers alike.
