Cannabis CEOs Prepare for Federal Reform as Verano’s Archos Renews His Holiday Wish List
George Archos’ Christmas list hasn’t changed in years and he’ll be the first to admit it.
The CEO of Verano Holdings, one of the country’s largest multistate operators, has a simple request: for his cannabis company to be treated like a normal business. That means fair treatment from Meta. Fair treatment from the IRS. And fair treatment from federal regulators who, so far, have left plant-touching businesses in an unusual and costly limbo.
As Archos and other industry leaders take the stage at MJBizCon for the panel discussion “Federal Reform on the Horizon: Preparing for the Next Era of Cannabis,” the stakes for federal change have never been clearer or more urgent.
The Cannabis Industry’s Perennial Wish: Relief From 280E and the Shadow of Federal Prohibition
At the top of Verano’s holiday wish list is what tops nearly every cannabis CEO’s: the end of IRS Code Section 280E, which prevents plant-touching companies from deducting ordinary business expenses.
Federal rescheduling something President Donald Trump has floated for months would change that overnight.
For Verano, the financial impact is staggering. The company estimates that as much as $100 million has been drained from its balance sheets due to 280E over the years. Money that could have otherwise gone toward expansion, product innovation, retail buildouts, employee development, or increased R&D.
Rescheduling marijuana to Schedule III of the Controlled Substances Act would finally remove cannabis from 280E’s grip. But Archos and the other panelists emphasize that rescheduling alone won’t fix everything.
Joining Archos on the MJBizCon panel are:
- Shanita Penny, Executive Director of CPEAR
- Charlie Bachtell, CEO of Cresco Labs
Their message: Rescheduling may be monumental arguably the industry’s biggest regulatory win ever—but it still leaves major structural obstacles in place.
Beyond Rescheduling: A Long List of Reforms Still Needed for Cannabis to Feel ‘Normal’
Congress and Trump delivered one huge win this year by closing the 2018 Farm Bill loophole that fueled a $28.3 billion hemp-derived THC industry. But for regulated cannabis operators, that victory did little to improve day-to-day operations or financial stability.
To feel genuinely “normal,” cannabis businesses say the next era of reform must include:
• Banking Protections and Financial Access
Even with rescheduling, cannabis operators remain blocked from major financial institutions. The SAFER Banking Act still represents the industry’s best chance for dependable banking, merchant services, and lower operating risks.
• Access to Institutional Capital and Public Exchanges
Major exchanges like Nasdaq and NYSE remain off-limits to U.S. plant-touching businesses. This barrier creates inflated cost of capital, restricts liquidity, and forces operators to rely heavily on debt.
• Advertising and Platform Parity
Meta’s Instagram and Facebook continue to restrict or shut down cannabis accounts without warning—often impacting legal, licensed businesses. Archos notes that true reform includes ending this selective censorship.
• Expanded R&D and IP Development
Schedule III could unlock opportunities for clinical research, but crossing the threshold to true medical therapeutics requires broader federal support.
• And, of course, long-awaited 280E tax relief
Rescheduling checks only one box on a list that cannabis operators have been carrying around for more than a decade.
Acting Now: Why Smart Cannabis Operators Aren’t Waiting for Washington
Despite optimism surrounding federal reform, every panelist agrees on one point: relying on federal policy timelines is a recipe for disaster.
Cannabis companies learned many years ago that building a strategy around federal promises is risky. That’s why forward-thinking operators—including Verano—are preparing for regulatory change while continuing to optimize for the status quo.
A Verano spokesperson told MJBizDaily that the company has been leaning aggressively into areas that reflect current consumer demand and future-ready product diversification, including:
• Rapid expansion of pre-roll and vape categories
These remain among the fastest-growing segments in cannabis retail, with pre-rolls experiencing double-digit growth in multiple states.
• Enhanced product innovation like the Hyphen vaporizer platform
Hyphen, Verano’s proprietary oil vape system, uses preset temperature modes tailored to different extract types reflecting a broader shift toward sophistication in formulation and consumption technology.
• Strategic corporate relocation
In a forward-looking move, Verano recently relocated its corporate headquarters from British Columbia to Nevada. While subtle, the shift positions the company for smoother alignment with U.S. regulatory evolution and corporate governance standards.
The U.S. Market Still Offers Opportunity Even Without Federal Changes
Federal reform is slow, uncertain, and deeply political. But state-level momentum continues to open new doors.
Case in point: Virginia, where lawmakers recently announced their plan to launch adult-use cannabis sales by November 2026. This will become the South’s first legal recreational market—and companies like Verano already hold medical licenses there.
Similarly, major markets like Pennsylvania and Florida, where Verano operates more than 100 combined dispensaries, remain active prospects for adult-use transitions.
Preparing for the ‘Next Era’ of Cannabis: What Industry Leaders Hope Happens Next
At MJBizCon, Archos, Penny, and Bachtell share a cautiously optimistic outlook. The political landscape has shifted more in the past two years than in the previous ten, and momentum—even if inconsistent—is undeniably building.
If rescheduling happens, the cannabis industry will enter a fundamentally new chapter:
- Lower tax burdens
- Increased cash flow
- Expanded research access
- Reduced legal ambiguity
- Greater institutional legitimacy
But for true normalization equivalent to alcohol, tobacco, or traditional consumer packaged goods federal legalization, banking access, capital markets integration, and marketing parity must still follow.
Cannabis Companies Are Planning for a Future That’s Finally Taking Shape
George Archos may joke about his unchanged Christmas list, but the sentiment reflects a decade of industry frustration and determination.
The cannabis sector has weathered capital shortages, regulatory contradictions, inconsistent enforcement, fluctuating consumer trends, and fierce competition. And yet, operators remain resilient, innovative, and ready for what comes next.
Federal reform may take longer than the industry hopes, but companies like Verano are moving forward regardless of investing, innovating, expanding, and positioning themselves for a legal future that feels increasingly within reach.
For the first time in years, cannabis operators aren’t just wishing for change, they’re preparing for it.
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