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Marijuana industry spends millions lobbying as shutdown threatens SAFE Banking

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The cannabis industry continues to spend millions of dollars on high-powered lobbyists to sway U.S. senators to pass marijuana reform, but those efforts could be thwarted this fall by a government shutdown that threatens to upend Congress’ legislative calendar.

U.S. marijuana companies and trade groups spent more than $2.4 million lobbying the U.S. Senate in the first half of 2023, according to the most recent federal lobbying disclosure filings.That’s less than the $2.9 million spent on trying to woo the Senate over the second half of 2022, including the lame-duck session when cannabis banking reform seemed tantalizingly close.

But bipartisan squabbling over the bill’s final form – as well as a desire to secure more Republican co-sponsors to ensure SAFE Banking has the necessary 60 votes to bypass cloture – led to the Senate adjourning for August recess without that hearing.

Additional requests from companies that already have bank accounts are further complicating the picture.

Lobbyists for publicly traded cannabis companies have proposed adding language to SAFE Banking that would allow access to major U.S.-based exchanges, such as the Nasdaq.

Most cannabis multistate operators currently trade on the smaller Canadian Securities Exchange.

However, most Washington observers agree the major sticking points for such a proposal remain anti-money-laundering language as well as whether SAFE Banking can secure enough Republican co-sponsors to guarantee passage on the full Senate floor.

And lobbying records confirm the obvious: Though federal rescheduling and, eventually, a nationwide legal industry like Canada’s remain on the wish list, SAFE Banking is the marijuana industry’s top priority.

The marijuana “industry appears to be exclusively focused on SAFE to the exclusion of everything else, and, therefore, the members are responding accordingly,” said Don Murphy, a veteran Washington DC lobbyist and director of government relations for the Texas-based Marijuana Leadership Campaign.

Until SAFE passes, “nothing else,” such as rescheduling, “will have any juice,” he added.

“After all, if Congress can’t pass even the smallest of incremental reforms like banking, what hope is there for comprehensive reforms?”

Meanwhile, the Biden administration’s review of marijuana’s status under the Controlled Substances Act continues in the background, though it’s generally accepted on Capitol Hill that necessary reform will have to come from Congress.

And with SAFE Banking having repeated success in the House of Representatives but being stymied in the Senate, most attention has shifted to the Senate.

Top dollars

Marijuana industry spending reflects these priorities, as well as the issue’s urgency and the need to curry favor with well-connected Washington power players.

New York-based Curaleaf Holdings was the marijuana industry’s top spender on Capitol Hill with a reported $450,000 worth of lobbying activity, according to the most recent quarterly Lobbying Disclosure Act forms filed in late July.

The company paid for its in-house lobbyist, Matt Harrell, and also retained Denver-based Brownstein Hyatt Farber Schreck, one of the nation’s largest lobbying firms, according to records.

Ohio-based Scott’s Miracle-Gro reported spending $400,000 in 2023, with $180,000 of that spent on DC-based BGR Group’s government affairs team and another $100,000 on Brownstein.

Cresco Labs spent $250,000, hiring both Brownstein as well as DC-headquartered Putala Strategies, whose principal, Chris Putala, is a former Senate aide to President Biden.

Cannabis companies were also represented by dedicated DC-based advocacy groups, including:

  • The Coalition for Cannabis Policy Education and Regulation, or CPEAR, whose funders include tobacco giant Altria Client Services. CPEAR spent $340,000.
  • The National Cannabis Roundtable, which reported spending $330,500.
  • The U.S. Cannabis Council, which spent $210,000.

Advocates and critics both point out that the marijuana industry’s spending on crafting friendly federal policy, while far and above past years, still pales in comparison to the cash splashed by entrenched special interests such as defense contractors and pharmaceutical companies.

“Markets are bad. There’s price compression. All the capital’s dried up. But we tell our counterparts: We know business is bad, but it’s either give up or get to DC,” John Sullivan, the chief lobbyist for Chicago-based Cresco Labs, told MJBizDaily in a phone interview.

“This is the only way to fix it.”

Dead after Christmas?

If Congress can quickly come to terms on a spending bill in September, that likely would allot plenty of time for a SAFE Banking markup hearing and vote in the Senate, said Reggie Babin, a former top aide to Sen. Chuck Schumer and now senior counsel at DC-based Akin Gump Strauss Hauer & Feld, another well-connected law firm retained by marijuana companies to represent their interests.

“I’ve always pointed to October as the most likely window to carve out a couple of weeks” for SAFE Banking, Babin told MJBizDaily in an interview.

“But that could be complicated if there’s a shutdown that costs you legislative days in the fall.”

If October passes without that hearing, there’s a definite time crunch.

Though some prominent voices such as Curaleaf chair Boris Jordan have said that early 2024 is a good time to pass SAFE Banking, several cannabis lobbyists speaking on background agreed the bill’s chances are greatly reduced if there’s no vote before the end of this year.

Curaleaf did not provide comment by the deadline for this story.

There’s also some feeling on Capitol Hill that marijuana reform is a mostly Democratic Party issue, meaning Republicans might be loath to contribute to what could be seen as a Democratic win in a presidential election year, one lobbyist said.

Also this fall, the industry should see the reintroduction of some more ambitious marijuana legislation such as the States Reform Act championed in past sessions by Rep. Nancy Mace, a South Carolina Republican.

That bill, which legalizes marijuana at the federal level but delegates many regulatory powers to individual states, could reappear in Congress as soon as next month, a Mace spokesperson said.

However, most of the attention and resources will continue to be spent on SAFE Banking, though the looming government shutdown is the main obstacle that’s out of the marijuana industry’s control.

And the longer SAFE Banking lingers in committee, the less likely any other reform remains.

Source: https://mjbizdaily.com/marijuana-industry-spends-millions-lobbying-as-shutdown-threatens-safe-banking/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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