How cannabis operators are preparing for federal marijuana reform

OG article by Chris Roberts

December 4, 2025

The cannabis industry is bracing for potential federal marijuana reform, with operators like Verano Holdings and Cresco Labs outlining strategic preparations amid regulatory uncertainty. Leaders such as George Archos of Verano emphasize eliminating Internal Revenue Code Section 280E, which imposes excessive taxes—costing Verano up to $100 million annually—while pushing for the SAFER Banking Act to enable secure financial services. Access to institutional capital is critical to alleviate debt burdens, and removing advertising bans on platforms like Instagram would boost market visibility. Rescheduling cannabis to Schedule III offers partial tax relief but falls short of full descheduling needed for normalized operations. The 2018 Farm Bill's hemp provisions provided limited benefits to regulated markets. In the meantime, Verano has shifted its headquarters to Nevada for a friendlier regulatory environment and innovated with products like the Hyphen vaporizer, pre-rolls, and vapes. Executives are eyeing expansions in states like Virginia (adult-use launch in 2026), Pennsylvania, and Florida, where they hold licenses. Despite optimism, industry voices stress proactive compliance and diversification, as federal timelines remain unclear under shifting political landscapes. Overall, these steps aim to position operators for growth once barriers lift, fostering a more sustainable ecosystem.