The Drug Enforcement Administration (DEA) says that states that have legalized marijuana are providing cover for illicit cultivation operations by foreign cartels—while at the same time implicitly acknowledging that ongoing prohibition in other states creates opportunities for that cannabis to be sold on the illegal market.
The agency’s 2025 National Drug Threat Assessment that was released on Thursday includes a section on marijuana trafficking, claiming that cartels and other organized crime groups “operate under business registrations granted by state licensing authorities in jurisdictions where marijuana cultivation and sales are ‘legal’ at the state level.”
“However, absent overt evidence such as the trafficking of marijuana across state lines or the commission of non-drug crimes such as money laundering and human trafficking, it can be difficult for law enforcement to immediately identify violations or discover an illegal grow,” the report says. “Asian [Transnational Criminal Organizations, or TSOs] defy restrictions on plant quantities, production quotas, and non-licensed sales, and hide behind state-by-state variations in laws governing plant counts, registration requirements, and accountability practices.”
DEA suggested that cartels are leveraging state cannabis markets by transporting “large amounts of marijuana directly from ‘legal’ states to states that have not legalized recreational use and those where state-level recreational approval is sufficiently recent to not yet have an established, regulated cannabis industry.”
Underlying that analysis seems to be a perhaps inadvertent acknowledgment by DEA that cartels are profiting off ongoing prohibition outside of legal states—indicating that the main demand for illicit marijuana isn’t coming from within states that provide regulated access to consumers but instead those where cannabis remains criminalized.
Implicit in that analysis is exactly what advocates have long argued: Legalization disrupts the illegal market.
Hellbound and Down 