Virginia's legal weed market is about to shake up the DMV's cannabis scene.

Why it matters: For years, Virginians have crossed into D.C. and Maryland to buy legal marijuana. That changes next July, reshuffling where customers, tax dollars and businesses flow across the region.

State of play: Five years after Virginia legalized marijuana possession, Gov. Spanberger last week signed legislation creating the state's recreational cannabis marketplace.

• The move comes after years of political gridlock spanning three governors and multiple vetoes.
• During that time, D.C. and Maryland dispensaries have relied on Virginia customers — and those driving up from Southern states like the Carolinas — to help boost business. Now, they're preparing for a more competitive regional market.

The intrigue: Virginia's new hemp restrictions take effect Aug. 15 — nearly a year before the legal marketplace launches — creating what some operators expect will be a temporary bump in Virginia customers crossing into D.C.

• The state is eliminating the years-old "25:1" hemp rule, which allows products containing THC to be sold if they're paired with much higher levels of CBD, the cannabis compound that isn't intoxicating.
• Removing that standard will make many hemp-derived THC products now sold in Virginia shops illegal.
• Spanberger says the change closes a loophole that allowed intoxicating products to proliferate, while hemp growers argue it'll wipe out much of their existing inventory.

What they're saying: "Virginia legalization is a double-edged sword," District Cannabis director Grace Hyde tells Axios.

• Hyde, a cannabis advocate and small business operator, expects Virginia shoppers to continue crossing into D.C. once the hemp crackdown takes effect. But when Virginia dispensaries open next July, many of those customers will likely stay home.
• About 12% of District Cannabis customers either live in Virginia or travel through the state en route to D.C., she says. Those longer-distance shoppers also tend to buy in larger quantities than locals, she says.

Yes, but: D.C.'s cannabis market will still have advantages. Unlike Virginia and Maryland, D.C. now allows on-site cannabis consumption.

• That's fueled a growing number of "cannabis hospitality" establishments like Higher Ground in Ivy City, which is set up like a brewery and beer garden for weed. Plus: cannabis wellness and yoga studios like Aligned DC.
• The city is also expanding the offerings, with legislation underway for cannabis drink production.

What we're watching: District Cannabis plans to open a lounge above its Union Market shop this fall that will double as a coworking space by day and host yoga classes, craft nights and book clubs in the evenings.

• "We'll feel some pain," Hyde says. "But any additional legalization is good for the cause."

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Here's how Virginia's recreational marketplace will work:

• Timeline: Retail marijuana sales begin July 1, 2027. Applications for licenses open Feb. 1.
• Limits: Adults 21 and older can purchase and possess up to 2 ounces of marijuana.
• Taxes: Virginia's cannabis sales tax will begin at 6% before increasing to 8% in 2029. Local governments can add another 1% to 3.5%. Revenue will support K-12 education, early childhood programs, behavioral health services and community reinvestment efforts.

More details

We were, shall we say, underwhelmed by what D.C., Maryland and Virginia chose to put in the 250 time capsule. (Spoiler: It was coins.)

Why it matters: The capsule contains artifacts from all 50 states and six territories and was buried on the Fourth of July in Philly, where it will be dug up 250 years from now.

• So while our AI-robot descendants will be beep-booping with joy at how cool Maine and Ohio were — a whalebone and fabric from the Wright Brothers' plane! — they'll just think we were really, really into coins.

Between the lines: OK, to be fair, states did have to think about what would hold up well over 250 years — meaning nothing that could decompose or affect the other items.

• Specialists engineered the time capsule to last: no edges (those tend to degrade more easily), totally airtight and the exact right temperature and humidity.

State of play: Still, we thought we could have come up with something a little more exciting.

• So we asked readers what they would have put inside — here are some of their responses:

🏛️ D.C.:

• "A chip of American Flag blue paint from the reflecting pool"
• "Lantern fly exoskeleton"
• "Ben's Chili Bowl hot dog with the works. Mambo sauce. A Go-Go cassette tape"
• "A tiny vial containing air from the Metro platform at Gallery Place in August"
• "Poster of Sandwich Guy"
• "Donald Trump"
• "A D.C. license plate — because hopefully in the next 250 years, D.C. will finally have statehood"

🦀 Maryland:

• "Crab"
• "Old Bay"
• "Purple Line stuff"
• "The spray cans used to write 'Surrender Dorothy' on the bridge in front of the Mormon Temple"
• "Signage from Six Flags"
• "A suspended license plate, so we can all remember how awful their drivers are"

Suggestions for Virginia

🚁 Trump's latest White House project: A $5-6M granite helipad on the South Lawn funded by Skikorsky, the company behind Marine One. Trump argues the Lockheed Martin subsidiary's next-generation helicopters have torn up the grass. (Reuters)

🪿 Supporters of a D.C. foie gras ban are flocking together: The animal welfare group behind the measure submitted about 45,000 signatures to get it on the November ballot, more than the roughly 28,000 needed, NOTUS' Martin Austermuhle reports.

🚄 Metro clocked record-breaking July Fourth ridership: 866,000+ trips on rail and bus, with around 120k rides after midnight thanks to the extra-late fireworks.

The U.S. crashed out of its home World Cup last night, losing 4–1 to Belgium in Seattle, just after President Trump leaned on FIFA to get striker Folarin Balogun cleared to play.

• The Americans got their best crack at a deep run in a generation with home turf, a soft bracket and a mostly healthy roster, but squandered it in a lopsided and embarrassing exit.