D.C. Shuts Down Second Psychedelic Shop, Bouquet Labs Fined $10K, Virginia Eyes 2026 Cannabis Retail

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D.C. shuts down second magic mushroom shop in ongoing crackdown

Cap & Stem, a Sherman Avenue storefront specializing solely in psychedelic mushrooms, has become the second mushroom-only shop in Washington, D.C. to be shut down by authorities. The Alcoholic Beverage and Cannabis Administration (ABCA), alongside the Metropolitan Police Department (MPD), executed a closure order on July 3, 2025, seizing large quantities of psilocybin products and over $19,000 in cash.  

Bouquet labs agrees to $10K fine & license sale after 999 illegal cannabis plants seized

Bouquet Labs DC, LLC, the first D.C. medical cannabis cultivation applicant to be shut down for unlicensed operations, has agreed to a $10,000 fine and to sell its license following a May 2025 raid. Authorities discovered nearly 1,000 cannabis plants at its unauthorized grow site

  • Please submit your questions for ABCA director Fred Moosally. Not all questions are guaranteed to be answered. 
  • Next ABC Board meeting July 16 at 10:30 A.M., agenda, watch.

Ceres Naturals agrees to consent order after regulatory violations at Maryland cannabis facility 

Ceres Naturals, a licensed cannabis processor in Frederick, Maryland, has entered into a Consent Order with the Maryland Cannabis Administration after an unannounced inspection uncovered multiple regulatory violations. Issues included improper visitor logs, inadequate cannabis storage and disposal, unregistered and untrained staff, and non-compliant equipment sanitation. The company avoided a formal hearing by agreeing to corrective actions, highlighting the state’s strict oversight of cannabis operations.

  • Researchers at the University of Maryland launched a groundbreaking clinical trial—the LiBBY Study—to test whether an investigational THC/CBD oral treatment can safely reduce agitation in late-stage dementia patients nearing end-of-life care.

Virginia Lawmakers Launch Cannabis Commission to Lay Groundwork for Retail Market in 2026

Virginia’s newly formed Joint Commission to Oversee Transition to a Retail Cannabis Market held its inaugural meeting in Richmond on July 9, 2025, marking a pivotal step toward legalizing adult‑use cannabis retail in the state. Chaired by Del. Paul Krizek (D‑Fairfax), the commission aims to build on previously vetoed legislation—such as HB 2485/SB 970—by drafting a robust framework for cannabis regulation rooted in public health, restorative justice, economic equity, and community reinvestment. The panel, operating under House Joint Resolution 497 through July 1, 2028, will gather public input and shape proposals for a possible 2026 legalization push, hoping a shift in the governor’s office will bring adult‑use retail closer to fruition. 

  • Virginia regulators unveiled a new online portal for medical cannabis patients.

ICYMI: Cookies lands in D.C. and Gov. Moore halts Maryland cannabis hub

East Coast Roundup

Pennsylvania Senate Majority Leader Joe Pittman stated that recreational cannabis legalization won’t be included in the current budget, dampening momentum despite bipartisan support and renewed efforts by legislators.

A surge in operator closures in Massachusetts has led to 23 cannabis businesses surrendering or letting licenses lapse by mid‑May—double the number of retail shutdowns in all of 2024—due to economic pressures and rising competition.

As Delaware prepares for adult‑use cannabis sales in August, Governor Matt Meyer is weighing a bill that would override county zoning restrictions, emphasizing the tension between accelerating rollout and preserving local authority.

Culture & More

Since Colorado legalized recreational cannabis, veterinarians have reported a significant rise in accidental cannabis intoxication cases among dogs, with edibles being the primary cause.

Thailand’s government re-criminalized recreational cannabis use, mandating medical prescriptions for purchase and triggering deep uncertainty across its now $1 billion cannabis industry.

Around the Country 

Federal agents carried out major immigration raids at two Southern California farms—deploying flash-bangs and detaining at least 200 workers—sparking violent clashes with protesters during operations at cannabis facilities in Carpinteria and Camarillo.

A University of Colorado Boulder study found that nearly half of cannabis flower products sold in Colorado are inaccurately labeled for THC potency—raising consumer safety concerns.

California’s regulated cannabis market is showing strong growth, driven by expanding retail access and increased consumer demand across the state.

Florida has begun enforcing stricter regulations on hemp-derived “diet weed” extract products, mandating compliance with new safety and labeling standards.

From the swamp

Sen. Mitch McConnell is spearheading an amendment in the FY2026 Agriculture-FDA appropriations bill to close a loophole that has allowed intoxicating hemp-derived THC products since the 2018 Farm Bill, potentially banning consumable hemp items with measurable THC in a year’s time.

A GOP-controlled House Appropriations Committee advanced legislation that would prohibit the Department of Justice from using federal funds to reschedule cannabis under the Controlled Substances Act, while preserving penalties for sales near schools and parks.

Sen. Rand Paul warned that House Freedom Caucus Chair Andy Harris’s proposed hemp restrictions in a federal spending bill would “completely destroy the American hemp industry,” making it nearly impossible to sell products like CBD oil. Listen to the whole interview on Ask a Pol Drugs.

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Did you know that the popular “gifting” shop model is no longer allowed under Washington, D.C. regulations? To find a legal medical cannabis provider or adult-use retailer, browse our maps of licensed dispensaries in D.C. and Maryland below:

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