DEA publishes full rescheduling hearing transcript as decision nears; Supreme Court set to weigh federal home-distilling ban this fall; New Mexico credit union exits cannabis banking Nov. 1.
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NEW REALM BREWING
Daily Compliance Brief
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Vol. 1 • Edition 13 • Thursday, August 27, 2026 • Alcohol & Hemp/THC Regulation • Federal + All 50 States
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Good morning — here's the regulatory picture for alcohol and hemp/THC beverages, readable in about three minutes. Every headline links to the original source. A quieter news day, so today's edition runs a little shorter than usual.
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Top Story
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DEA publishes full rescheduling hearing transcript as Schedule III decision nears
FEDERAL • MJBizDaily • Aug 26
The Drug Enforcement Administration released the complete 2,533-page transcript of its 11-day cannabis rescheduling hearing, which concluded July 15. In the record, DEA attorney James Schwartz argued that marijuana "can no longer remain in Schedule 1" because it has a currently accepted medical use, citing more than 30,000 practitioners treating over six million patients across 43 jurisdictions. Chief Administrative Law Judge Derek Julius will now issue a formal recommendation; the final decision rests with DEA Administrator Terrance Cole.
Why it matters: A move to Schedule III would change federal tax treatment for cannabis businesses and could accelerate investment in THC products that increasingly compete with beer at retail — and the timing now hinges on the judge's recommendation.
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Federal
Supreme Court expected to weigh federal home-distilling ban this fall
U.S. SUPREME COURT • SCOTUSblog • Aug 26
Two petitions filed this summer ask the justices to resolve a circuit split over the 158-year-old federal ban on at-home distilling of spirits, after the Sixth Circuit upheld the ban and the Fifth Circuit struck it down. The court is likely to consider both petitions at conferences in October or November.
Why it matters: The case tests how far federal taxing power reaches into alcohol production — a ruling either way could redraw the boundary between federal and state authority over who may produce spirits, and where.
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Around the States
New Mexico credit union to close its cannabis banking arm Nov. 1
NEW MEXICO • MJBizDaily • Aug 25
Albuquerque-based U.S. Eagle Federal Credit Union said it will shut down Aery Group, the cannabis banking division it launched in 2019, effective November 1; CEO Michael Moore cited intensifying competition, with a consultant quoted in the report counting at least 19 other providers now serving New Mexico cannabis businesses.
Why it matters: Businesses banking through Aery — including beverage makers with cannabis or hemp lines — need replacement accounts in place before the cutoff to keep deposits, payments, and payroll moving.
Illinois adds two qualifying conditions to its medical cannabis program
ILLINOIS • Marijuana Moment • Aug 25
The Illinois Department of Public Health added sickle cell disease and polyendocrine metabolic ovarian syndrome with chronic pain as qualifying conditions, bringing the state's medical cannabis program to 58 conditions following Medical Cannabis Advisory Board review.
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On the Radar
Sept. 8: Canada's announced retaliatory tariffs on U.S. goods, including alcohol, are set to take effect — watch for updates affecting U.S. beer and spirits exports and provincial restocking commitments.
Sept. 30: FDA's stated target for initial hemp cannabinoid guidance; a Congressional Research Service report covered last week says the agency's cannabinoid lists and container guidance are already months overdue.
Nov. 12: Federal hemp THC caps take effect under last year's spending law unless Congress acts; House members remain divided on a delay, with hemp beverage businesses planning around the current date.
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Jeremy Barnes | Chief Financial Officer, New Realm Brewing Co.
Prepared for New Realm's leadership team and valued partners. This brief is for general informational purposes only and is not legal advice; it is compiled with AI assistance from the linked sources — please confirm details at the link before acting on them.
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Audio transcript (~2 min read)
This is the New Realm Compliance Brief, Volume One, Edition Thirteen, for Thursday, August twenty-seventh.
Our top story: the Drug Enforcement Administration has published the complete transcript of its cannabis rescheduling hearing — more than twenty-five hundred pages covering eleven days of testimony that wrapped up in mid-July. In the record, a D E A attorney argued that marijuana can no longer remain in Schedule One because it has a currently accepted medical use, pointing to more than thirty thousand practitioners treating over six million patients across forty-three jurisdictions. The chief administrative law judge, Derek Julius, will now issue a formal recommendation, and the final call rests with the D E A administrator. A move to Schedule Three would change federal tax treatment for cannabis businesses and could accelerate investment in T H C beverages that increasingly compete with beer at retail.
In other federal news, the Supreme Court is expected to look this fall at the hundred-fifty-eight-year-old federal ban on distilling spirits at home. Two petitions ask the justices to resolve a split between appeals courts — one upheld the ban, another struck it down — and the court will likely consider the petitions in October or November.
Around the states: in New Mexico, U S Eagle Federal Credit Union said it will close its cannabis banking arm on November first, citing competition, so affected businesses need replacement accounts before the cutoff. And Illinois added two qualifying conditions to its medical cannabis program.
On the radar: September eighth, Canada's retaliatory tariffs on U S goods, including alcohol, are set to take effect. September thirtieth is the F D A's stated target for initial hemp guidance. And November twelfth remains the effective date for federal hemp T H C caps unless Congress acts.
Full details and source links are in today's email. This update is for general information only — it is not legal advice.