How We Got Here
New York’s legal cannabis market has faced numerous challenges since its inception, including delays in licensing, competition from illicit sellers, and regulatory hurdles. The state’s strict requirements mandate that all cannabis products sold must be cultivated, processed, and packaged within New York to support local agriculture and ensure product safety.
Investigation into Vape Brands
In May 2025, the New York State Office of Cannabis Management (OCM) initiated an investigation into prominent cannabis vape brands, including Stiiizy and Mfused. The probe centers on allegations that these companies sold products made with cannabis sourced from unlicensed, out-of-state suppliers, violating state regulations. Approximately $10 million worth of vape cartridges and pre-rolled joints have been pulled from shelves as part of this investigation.
The products in question were processed by Omnium Health, which asserts that any discrepancies stemmed from documentation errors and maintains that all extraction occurred in a state-licensed facility.
Regulatory and Industry Implications
This investigation adds to the ongoing scrutiny of New York’s cannabis regulatory framework. Earlier in the year, the state’s $254 billion budget resulted in significant changes to the Cannabis Control Board (CCB), including the elimination of Chair Tremaine Wright’s $229,000 annual salary, aligning her compensation with other unpaid state board chairs.
Industry leaders have expressed concerns over the state’s regulatory approach. Boris Jordan, CEO of Curaleaf, criticized the state’s high fees for transitioning into the recreational market and the perceived lack of enforcement against illegal out-of-state cannabis products entering legal stores. “New York asked us to invest, and now they’re trying to bring us down,” Jordan stated.
As a result of these regulatory challenges, six of the state’s original ten medical cannabis firms have opted not to expand into adult-use sales. The number of registered medical patients has also declined from 150,000 in 2021 to 95,000, even as recreational dispensaries increase.
