Morning Brew Daily Cannabis Stocks Soar & Trump Challenges State AI Regulation Laws
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Dec 15, 2025 Cannabis stocks are soaring as Trump plans to reclassify marijuana, potentially changing the economic landscape. Meanwhile, an executive order aims to challenge state AI regulations, stirring political debates. A surprising kid-friendly gaming console is outselling the Xbox, reflecting consumer trends. In dining, appetizer sales rise as diners opt for budget-friendly options amidst economic shifts. The hosts also highlight key upcoming economic indicators to watch in the week ahead.
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Big Potential From Cannabis Reclassification
- Reclassifying cannabis to Schedule III would cut punitive tax burdens and unlock research opportunities.
- Markets surged because lower taxes and legitimization could make many cannabis businesses viable.
Tax Code Drives Cannabis Economics
- Section 280E currently prevents cannabis businesses from deducting normal operating expenses, inflating effective tax rates.
- Moving to Schedule III could remove that provision and dramatically improve margins and cash flow.
Regulation Could Bring Pharma Into Play
- Reclassification could invite pharmaceutical competition and stricter manufacturing and labeling rules.
- That shift may raise enforcement risk and change the industry's competitive dynamics toward pharma standards.