NEW YORK, NY / ACCESS Newswire / December 19, 2025 / Cannabis is entering a phase where identity matters more than narrative. As federal oversight takes shape, the industry is being pulled out of a patchwork of state systems and into a framework that resembles other regulated categories. In those environments, compliance is not about disclosure. It is about proof.

That shift changes what it means to operate at scale.

Federal normalization does not immediately transform cannabis into a pharmaceutical, but it does move it closer to medical-grade expectations. Products that are ingested, absorbed, or used therapeutically are judged by how well their physical reality aligns with their records. Labels, declarations, and after-the-fact reporting are no longer sufficient. Regulators expect continuity between what a product is and what the system says it is.

This is where identity becomes infrastructure. Here's why it's vital to this conversation.

Cannabis Needs Verification, Not Visibility

Most cannabis compliance systems were built for speed and local reporting. They track activity, but they do not always verify integrity. Under light oversight, that distinction is tolerable. Under federal scrutiny, it becomes a liability.

Federal regulators expect records that hold up over time. They expect chain-of-custody continuity from origin through distribution. They expect discrepancies to be explainable without reconstruction. When systems rely on manual reconciliation or fragmented data, those expectations are difficult to meet.

SMX (NASDAQ: SMX) approaches this problem at the material level. Instead of relying solely on databases or documentation, its technology embeds identity directly into physical materials. That identity persists through transformation and movement, allowing records to reflect reality rather than attempt to approximate it.

For cannabis, that approach aligns naturally with the direction of federal oversight. When proof is embedded, compliance becomes continuous instead of episodic.

FDA-Compliant RPET Shows The Model Works

This same logic is already operating inside FDA-regulated markets.

SMX recently demonstrated its molecular marking technology in recycled PET plastics used for food-contact applications, operating within FDA Food Contact Substance regulations under 21 CFR. These rules govern some of the most tightly controlled materials in the supply chain. Any system that functions here must demonstrate stability, safety, and verifiable compliance.

In practice, molecular markers allow recycled material to carry permanent, invisible proof of origin, composition, and regulatory status, even in applications where contamination risk is tightly controlled. This enables recycled plastics to move into categories that were previously closed to them.

That matters for cannabis because the regulatory expectation is similar. When a product interacts with the human body, regulators care less about intent and more about verifiable control. Food-grade rPET provides a real-world demonstration that molecular identity can operate inside strict federal frameworks.

From Cannabis To Plastics, The Compliance Logic Is Shared

Cannabis and rPET are different markets, but they face the same regulatory logic. Both require traceability that survives transformation. Both demand proof that cannot be altered downstream. Both expose the weaknesses of systems built on declarations.

SMX's relevance is not tied to a single product category. It is tied to the need for persistent identity in regulated environments. Whether the material is plant-based or polymer-based, the requirement is the same. Physical goods must be able to prove what they are.

As cannabis moves toward federal standards, that requirement becomes unavoidable.

Identity Becomes The Foundation Of Scale

Markets are no longer rewarding speed alone. They are rewarding control.

SMX's ability to embed identity at the molecular level and to operate within FDA-compliant frameworks positions it at the intersection of regulation and scalability. Cannabis operators moving into federal oversight face the same decision that plastics manufacturers already confront. Patch legacy systems, or adopt infrastructure built for verification.

As oversight tightens, the difference becomes decisive.

Cannabis will not be filtered by enthusiasm or branding. It will be filtered by execution. The companies that can prove integrity across their supply chains will advance. Those who cannot will face compounding friction.

Identity is no longer a feature. It is the foundation.

About SMX

As global businesses face new and complex challenges relating to carbon neutrality and meeting new governmental and regional regulations and standards, SMX is able to offer players along the value chain access to its marking, tracking, measuring and digital platform technology to transition more successfully to a low-carbon economy.

Forward-Looking Statements

This information contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements are based on current expectations, estimates, forecasts, and assumptions regarding future events involving SMX (NASDAQ: SMX), its technologies, its partnership activities, and its development of molecular marking systems for recycled PET and other materials. Forward looking statements are not historical facts. They involve risks, uncertainties, and factors that may cause actual results to differ materially from those expressed or implied.

Forward looking statements in this editorial include, but are not limited to, expectations regarding the integration of SMX's molecular markers into U.S. recycling markets; the potential for FDA-compliant markers to enable recycled PET to enter food-grade and other regulated applications; the scalability of SMX solutions across diverse global supply chains; anticipated adoption of identity-based verification systems by manufacturers, recyclers, regulators, or brand owners; the potential economic impact of turning recycled plastics into tradeable or monetizable assets; the expected performance of SMX's Plastic Cycle Token or other digital verification instruments; and the belief that molecular-level authentication may influence pricing, compliance, sustainability reporting, or financial strategies used within the plastics sector.

These forward looking statements are also subject to assumptions regarding regulatory developments; market demand for authenticated recycled content; the pace of corporate adoption of traceability technology; global economic conditions; supply chain constraints; evolving environmental policies; and general industry behavior relating to sustainability commitments and recycling mandates. Risks include, but are not limited to, changes in FDA or international regulatory standards; technological challenges in large-scale deployment of molecular markers; competitive innovations from other companies; operational disruptions in recycling or plastics manufacturing; fluctuations in pricing for virgin or recycled plastics; and the broader economic conditions that influence capital investment and industrial activity.

Detailed risk factors are described in SMX's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on forward looking statements. These statements speak only as of the date of publication. SMX undertakes no obligation to update or revise forward looking statements to reflect subsequent events, changes in circumstances, or new information, except as required by applicable law.

EMAIL: info@securitymattersltd.com

SOURCE: SMX (Security Matters) Public Limited