Massachusetts Cannabis Control Commission Considers Freeze on New Grow Licenses as Prices Fall

13 February 2026

Massachusetts cannabis regulators are considering a step that could reshape the state’s legal marijuana pipeline: a pause on new cultivation licenses.

On Thursday, members of the Massachusetts Cannabis Control Commission voted to schedule a public hearing on a potential freeze of new cultivation licenses and a temporary moratorium on approving additional canopy capacity. The CCC has not set a date for the hearing yet, but commissioners said they want public testimony on whether slowing new supply could help stabilize a market they describe as oversupplied and financially stressed.

Price data from the commission suggests the pressure is real. CCC figures show the average price for an eighth of an ounce fell to $14.20 in November, a new low compared with $45 in 2021. Another CCC data point cited by regulators shows the average retail price for an ounce of flower reached a record-low $113.68 in December, down from $401.43 in December 2020. Even as prices have dropped, the CCC said sales have continued to rise, and gross sales have crossed the $9 billion mark as of February 4, aided in part by heavy volume before January’s major snowstorm.

For some businesses, lower prices appear to be translating into closures and financial distress. Several cultivation sites and retailers have closed, including Ayr Wellness’s Milford cultivation facility, which shut down in August and resulted in 157 job losses. 24 licensees have been placed into court-appointed receivership.

Commissioners pointed back to supply growth. The CCC reported the number of licensees increasing from 223 in July 2023 to 686 in January, based on data discussed at a January 15 meeting. Commissioner Kimberly Roy described “price compression” as unsustainable and said expanding canopy has contributed to oversupply. She also said the state’s canopy density sits at about 1.1 acres per person over 21, which she characterized as in the “upper middle” range among adult-use states.

Roy and others also cited how much cultivation capacity already exists or could come online. She said Massachusetts has nearly 3 million square feet of land for cannabis farming and another 700,000 square feet that could eventually be added. Commissioners said pausing new licenses may give the industry “a sigh of relief,” in Roy’s words, because many license holders across the supply chain, from cultivation to retail, are feeling the squeeze.

The hearing would not just be about growers. Commissioners said they are also seeking testimony on whether to freeze other license types, including craft marijuana cooperatives, product manufacturing, and microbusinesses. The CCC offers a wide range of licenses, including cultivators, retailers, product manufacturers, research facilities, independent testing labs, and transporters.

At the same time, the CCC has a lot on its plate besides market stabilization. Regulators are rolling out social consumption regulations, and officials have also described work ahead on worker safety, enforcement, and setting up a legal market for cannabis lounges. Chair Shannon O’Brien suggested that a pause on new applications could allow the commission to focus more on public health and safety, while still taking public feedback on what a freeze should look like.

Thursday’s meeting also highlighted internal tensions over transparency. Commissioners debated whether a legal team memo about the licensing-freeze policy should be treated as confidential. Associate general counsel Erica Bruno declined to discuss parts of the memo in public, citing attorney-client privilege. O’Brien questioned whether legal opinions that shape public policy deliberations should be discussed openly in public meetings, and she raised concerns about legal barriers to transparency. Commissioners did not vote to release the memo, and the discussion included complaints from Roy about unequal access to legal guidance during a recess. CCC Executive Director Travis Ahern said it could help if commissioners met with the legal team before public meetings to be better prepared.

Looking ahead, the commission’s licensing debate intersects with legislative negotiations at the State House. Lawmakers are working toward final terms of a cannabis reform bill that could allow companies to obtain more dispensary licenses, a change that may generate more applications and require the CCC to adapt even as it considers limiting new cultivation. For Massachusetts consumers, patients, and cannabis businesses, the next practical milestone is the CCC’s public hearing, where regulators will take testimony on whether a freeze, and how broad it should be, fits a market that’s selling more cannabis while charging less for it.