Medical Marijuana Market In D.C. At Risk Of Perishing, Affected Business Owner Explains

Washington, D.C.'s medical market could perish within the next three months if the downtrend burdened by the underground market and neighboring Maryland continues. That's according to Grace Hyde, the owner of District Cannabis.

"If enforcement doesn't meaningfully begin by the end of July and start to turn things around, I think the medical market could cease to exist within the next 90 days," Hyde told Green Market Report's John Schroyer recently.

At the moment, only 15 of 23 operators that are licensed to sell medical cannabis are operational in D.C.

Hyde has been running a cannabis cultivation business for eight years and has ventured into retail this past spring with a new medical marijuana dispensary. However, she's been facing enormous challenges. "Since January of 2024, the market has been in a really big slump," Hyde said. "We sold less than 400 pounds of flower each month, which is almost nothing."

Why?

Recreational marijuana use has been legal in the District of Columbia since 2014. However, its sale is still technically illegal due to a congressional ban, which led businesses to practice "gifting" weed in exchange for purchasing an overpriced item or service.

Law enforcement has previously attempted to curb unlicensed marijuana gifting shops. That said, between 200-300 unlicensed storefronts are still operational, Hyde said, despite efforts from state officials creating fierce competition to licensed medical cannabis retailers. To add to the mix, Maryland just celebrated the first anniversary of the legal cannabis sales launch that took place on July 1, 2023, which is yet another challenge with its lower prices for cannabis.

Read Also: DC’s Weed Gifting Goes Legit, Nebraskans Want Medical Marijuana Legalized And More Cannabis Regs

It remains to be seen if the longstanding prohibition in Washington, D.C. regarding allowing recreational cannabis sales is coming to an end, as a GOP House committee has recently introduced a spending bill that removes it.

The fiscal year 2025 spending bill, is an effort from Rep. Dave Joyce (R-OH), co-chair of the Congressional Cannabis Caucus and the primary advocate for bipartisan cannabis banking reform. As highlighted by Benzinga's Patricio Liddle recently, Joyce's leadership has seen the exclusion of the rider that barred D.C. from using local funds to regulate recreational cannabis, a provision championed by Rep. Andy Harris (R-MD) in prior years.

Read Next:

• ‘Predatory Practices’ In Missouri, Washington D.C. Mayor Declares 4/20 Tax Holiday On Medical Marijuana And More Cannabis Reg Updates

Interested in the latest developments in cannabis policy and regulation? Hear directly from top experts at the Benzinga Cannabis Market Spotlight event in New Jersey on June 17th. Get your tickets now before prices surge by following this link.