Washington Policy Pulse: Cannabis Rescheduling, Stablecoins, and 2026 Outlook

End-of-Year Washington Policy Landscape

• 🗓️ Washington is approaching the end of the year with a focus on holiday breaks, and many legislative actions are expected to be pushed to 2026.
• 🏛️ Key debates, such as ACA subsidies, are unlikely to be resolved this week, with a potential for the discussion to extend beyond the current congressional session.

Government Shutdown and Defense Spending

• ⚠️ A government shutdown remains a possibility on January 31st, though the political climate suggests a higher likelihood of an agreement or further delay rather than a full shutdown.
• 🇺🇸 The National Defense Authorization Act (NDAA) is expected to be finalized by the Senate, providing clarity on $900 billion in annual funding for the Department of Defense for 2026.

Stablecoin Regulation and Crypto News

• 🪙 A proposal from the FDIC and the Fed regarding stablecoins is awaiting White House review, marking a potential first step in implementing the Genius Act for stablecoin issuers.
• ⚖️ The regulatory proposal is considered more significant for legal and compliance professionals than for crypto investors, with its release before year-end uncertain.

Farm Aid and Cannabis Rescheduling

• 🚜 The recent $12 billion in farm aid is viewed as a temporary measure, with expectations of further aid in 2026, possibly through a light farm bill, due to significant crop losses.
• 🌿 A potential presidential order to reclassify marijuana from Schedule I to Schedule III is a major focus, with significant implications for the cannabis industry, particularly regarding 280E tax relief.
• 🚀 While President Trump can direct the DOJ and DEA to restart the rescheduling process, the timeline and political motivations for this move are subject to ongoing analysis.

2026 Outlook: Election Year Dynamics

• 🗳️ 2026 is anticipated to be a deregulation-focused year, with less legislative activity due to it being an election year, leading to increased focus on campaigning.
• 📈 The political landscape, influenced by recent off-cycle election results, suggests Republicans may prioritize campaigning over legislative action to retain seats.
• ⚖️ The Supreme Court's decision on AIPA tariffs is expected in early 2026, with potential for President Trump to direct investigations for alternative tariffs, though the political will for this remains a question.