Washington, D.C. has intensified its efforts to shut down unlicensed cannabis shops, with at least five businesses recently ordered to close. These include District 93 on U Street NW, Wellshroomness on Kennedy Street NW, Crown Tobacco on Florida Avenue NW, B&K Convenience Store and Smoke Shop on 18th Street NW, and both Pot Paradise and H & Vape Smoke Shop on H Street NE. The closures stem from illegal operations that led to the seizure of cannabis products, THC items, mushroom edibles, and, in one case, a firearm.
The crackdown comes as the D.C. cannabis market faces ongoing regulatory challenges. Despite voters approving recreational cannabis legalization in 2014, federal restrictions have hindered the establishment of a legal market. Congressman Andy Harris has consistently worked to include provisions in federal budget legislation that prevent D.C. from using local funds to create a regulated recreational cannabis market. This has stalled progress for years, leaving many shops operating outside the law.
In Virginia, Aaron Ramon Miller, the owner of Zarati cannabis shops, accepted a plea deal related to drug and money laundering activities. By agreeing to the deal, Miller avoids prison time but must serve three years of supervised probation and forfeit over $400,000 in cash and luxury items, including two Rolls-Royce vehicles. His shops were found to have laundered approximately $9 million through their accounts, prompting a significant investigation that led to a raid in September 2023.
In Maryland, the state’s Comptroller’s Office reported over $17.5 million in adult-use cannabis sales tax revenue collected from January to March 2025. This income, primarily from the central region, will support various initiatives including community reinvestment and public health programs. The cannabis sales tax rate is set to increase from 9% to 12% starting July 1, 2025.
Several issues are also arising in the broader East Coast cannabis landscape. New York’s Office of Cannabis Management has recalled over 100 cannabis products from licensed dispensaries due to safety concerns, while a Delaware bill proposes restricting the sale of non-alcoholic beverages containing THC to liquor stores only. Meanwhile, Maine lawmakers have deferred a bill that would require contaminant testing for medical cannabis, leaving the state without such regulations.
Social media platforms Facebook and Instagram have recently lifted restrictions on search results related to cannabis, allowing users to access content from cannabis businesses and advocacy groups more freely. This change could improve visibility for cannabis brands and information.
Additionally, some parents of children with autism are considering cannabis as a treatment option, reporting positive outcomes despite health professionals advising caution due to a lack of comprehensive scientific studies.
As the cannabis industry evolves, challenges persist. A report indicates California’s legal cannabis market is struggling, facing competition from the illicit market and burdensome tax regulations. In Texas, legislation is advancing that could impose a near-total ban on THC products, which may lead to significant job losses and economic repercussions. Meanwhile, Minnesota is working to establish a regulatory framework for its unregulated THC market to promote product safety.
The regulatory landscape for cannabis continues to shift, with various states grappling with the implications of legalization and enforcement.
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