Authorities in the US capitol have closed over two dozen unlicensed cannabis retails over the last six months to crack down on the grey market.
It came as the state, which officially legalized adult-use cannabis in 2017, failed to advance a bill that would legalize home cannabis cultivation for the ninth consecutive year.
Washington DC’s unique status as a ‘federal district’, meaning it is directly governed by the federal government rather than having its own independent legislature, continues to cause havoc for the state’s legitimate cannabis operators and cannabis consumers alike.
Despite being one of the first states to legalize adult-use cannabis, because it remains federally illegal Congress has largely blocked the implementation of its cannabis programme.
This has driven a booming grey market in which businesses exploit a provision allowing the gifting of up to two ounces to a friend without payment.
Over time, this loophole has been stretched, with entire brick-and-mortar stores now operating under the guise of gifting and legitimate businesses struggling to compete.
As previously reported, legitimate businesses have long been calling for immediate reform, and for enforcement to crack down on these grey market operators, who make it very difficult to compete legally and are often associated with high levels of crime.
Now, it seems that the authorities are starting to take action, with intensified enforcement efforts seeing the closure of 25 unlicensed stores over the last six months.
According to a statement from the office of DC Attorney General Brian Schwalb, who led the operation in partnership with the Metropolitan Police Department (MPD) and the District Alcoholic Beverage and Cannabis Administration (ABCA), these store have ‘been illegally selling unregulated, untested products that put District residents’ safety at risk’ for too long.
Since July 2024, ABCA and MPD have issued cease-and-desist orders, conducted undercover purchases, and executed search warrants at non-compliant locations.
Authorities have seized large quantities of cannabis, along with weapons, cash, and other illegal drugs. Some shop owners have been arrested, including one individual found with a semi-automatic firearm.
One store, after being forcibly closed, had its owners break back in and change the locks, leading to further legal action. Another establishment’s shutdown resulted in the seizure of:
- 35 pounds of cannabis flower
- 22 pounds of THC edibles
- 6 pounds of psilocybin mushrooms and edibles
- 2 pounds of cocaine
- 2 pounds of methamphetamine
- Over $6,800 in cash
- A semi-automatic handgun
- Ten dogs kept on the premises
Meanwhile, according to Marijuana Moment, lawmakers have once again failed to pass a bill that would legalize home cannabis cultivation, keeping personal growing a felony.
House Bill 1449, sponsored by Rep. Shelley Kloba, aimed to allow adults to grow up to six plants at home. Despite less opposition from regulators and approval from one committee, the bill was not acted upon before a key deadline, effectively killing it for 2025.
