In 2021, Mike Tyson made waves in the cannabis world when he launched his own brand, Tyson 2.0, under Carma HoldCo. What began with cannabis-derived edibles and related products quickly expanded, turning the brand into one of the fastest-rising names in the industry. The seeds of the $160 million venture were planted back in 2017 when Tyson purchased a 40-acre cannabis farm in California City, later branded Tyson Ranch. By the time Tyson 2.0 launched four years later, the youngest heavyweight champion in history sent a clear message to competitors. Speaking with Bryan Salmond, he declared, “Everybody’s involved. Only one can be the king,” staking his claim as a serious player in the business.

True to his word, Mike Tyson’s company grew at lightning speed. In 2022, Tyson 2.0 oversubscribed a $9 million Series A funding round led by JW Asset Management, cementing its legitimacy in the market. But as Tyson recently revealed, running a cannabis business isn’t without unique challenges. Despite building a legal operation, he admitted that banking restrictions could leave him vulnerable. In his own words, if he walked into a bank with $20 million in cash to pay taxes, “boom, I am in jail.” So even as his cannabis empire rises, Tyson faces an ironic reality, doing the right thing might still put him behind bars. Why, you ask?

Mike Tyson risks jail despite playing by the rules

On a recent podcast hosted by Katie Miller, the wife of White House Deputy Chief of Staff for Policy Stephen Miller, Mike Tyson opened up about two big parts of his life, his preparation for next year’s Floyd Mayweather exhibition bout and the challenges of running his marijuana business. When Miller asked him what he had learned since starting Tyson 2.0, Tyson admitted, “that is very tough. We have been doing this for a long time and to get as far as we have gotten in this period of time, even though it was a long time, it could take a lot longer.”

The host noted that such struggles are common for anyone starting something new, but Mike Tyson pushed back. For him, this wasn’t just another venture. “This is more than something. This is a whole new genre of something, you know, that’s never been done before. This is the prototype of legalising cannabis,” he said, framing his work as groundbreaking rather than typical.

His business partner, Adam Wilks (President and COO of Tyson 2.0), jumped in to stress just how difficult the cannabis industry can be. He explained that there is “no true blueprint” for building a business when federal law still restricts cannabis. Entrepreneurs face sudden bank account closures, a lack of access to loans, and countless “roadblocks and speed bumps” compared to traditional industries.

When asked if banking had been a problem, Mike Tyson didn’t hesitate: “Tons.” Burke elaborated that big banks avoid cannabis businesses since the product is still federally illegal. He explained their hope lies in rescheduling cannabis and enacting “safe banking” laws, which would finally allow mainstream banks to accept the industry as legitimate. Until then, Tyson 2.0 and others remain stuck in limbo.

Tyson illustrated the problem with a stark example. “Imagine if I just had you know because it’s a cash industry, so I have 20 million in cash. I am a good person, though. I am taking it to the bank because I want to pay taxes on this… If I go do that, they are going to arrest me,” he said. Despite trying to do the right thing, he warned the system could punish him for it.

Burke closed by pointing out how operators are forced into smaller banks with higher interest rates, making it harder to stabilize or grow. Still, Tyson ended on a hopeful note. He said he expects “good news” soon on marijuana rescheduling, a move that could ease many of these burdens and finally give cannabis entrepreneurs the legitimacy they’ve been fighting for.

Mike Tyson looks forward to major improvements

Mike Tyson has criticized the current classification of cannabis as a dangerous drug, arguing it’s a “medicine” and accusing politicians of being “afraid of a little flower.” In clips of his interview shared with Marijuana Moment ahead of the full release, Mike Tyson also downplayed the risks of overconsumption, saying that in most cases, taking too large a dose simply puts people to sleep. While making his case, he questioned the plant’s current scheduling, though he mistakenly said cannabis is already a Schedule III substance under the Controlled Substances Act (CSA).

In reality, marijuana remains a Schedule I drug under the CSA. However, former President Donald Trump is actively considering a proposed rule, initiated during the Biden administration, that would reclassify cannabis as a Schedule III drug. Such a move wouldn’t fully legalize marijuana, but it would acknowledge its medical value, ease research restrictions, and allow licensed businesses to qualify for federal tax deductions.

Tyson, who owns the cannabis brand Tyson 2.0, said he hasn’t discussed the matter directly with Trump despite their relationship. Still, he confirmed having conversations with “many people in the administration” about cannabis reform and added that he is “looking forward for good news” on the pending rescheduling proposal. That said, what are your thoughts on the situation?