On August 5, 2025, Metrc and BioTrack—two of the most powerful technology companies in cannabis compliance—announced a "strategic partnership" that could reshape the regulatory landscape of the entire industry. On the surface, it sounds harmless. A new entity, BT Government, Inc., will take over BioTrack’s state-facing operations, with Metrc providing support and collaboration. BioTrack will now “focus on commercial solutions,” while Metrc stays in its regulatory lane.

But this move isn’t just a restructuring. It’s a quiet consolidation of power. And for cannabis operators already struggling with compliance complexity, system instability, and cost burdens, it’s a flashing red warning light.

What Changed—and Why It Matters

In short, Metrc and BioTrack are no longer true competitors. They're partners with a shared interest in maintaining control over government compliance infrastructure. New York State, which selected BioTrack to run its seed-to-sale (STS) tracking system, is now caught in the middle.

On August 6, the NY Office of Cannabis Management (OCM) sent out a letter to licensees: OCM is pausing the STS integration deadline to assess the impact of this partnership on its systems and licensees. That’s not a small move. For a regulatory agency to stop rollout in real-time over a vendor transaction is rare—and revealing.

This partnership has introduced enough uncertainty to shake one of the largest legal markets in the U.S.

What’s Actually Happening Behind the Scenes?

Metrc and BioTrack are packaging this as a “collaborative realignment.” Here’s what they say is happening:

  • A new company, BT Government, will manage BioTrack’s contracts with states.
  • Metrc will support BT Government in delivering compliance tools.
  • BioTrack will now focus on building tools for commercial cannabis businesses—point-of-sale systems, ERPs, etc.

Here’s what it really means:

  • Two competitors are now working together on state contracts, blurring the line between vendor and regulator.
  • BioTrack, which was awarded state contracts based on being a distinct company, is now being supported by its former rival.
  • Licensees may no longer have a real choice in the systems they’re required to use, especially when the same infrastructure is being run by a single, consolidated tech operation.

Why This Is Dangerous for the Cannabis Industry

This isn’t just about software. It’s about the future of the legal cannabis supply chain, and who controls it.

  1. Vendor Lock-In Becomes Permanent
  2. Conflicts of Interest Are Baked In
  3. The Barriers for New Entrants Just Got Higher
  4. Innovation Takes a Backseat

New York OCM’s Response: A Telling Pause

The fact that New York OCM immediately paused integration following the partnership announcement is telling. Their letter was clear: The agency “must evaluate systems implications” for both the agency and licensees.

The original deadline for STS integration is suspended—for now. But licensees are still required to track inventory in real time using their own systems (per 9 NYCRR § 125.8(a)). This shows that even regulators are wary.

If the OCM is taking a step back to reassess, other states should pay attention.

This Isn’t Just a New York Problem

Let’s be blunt, the rest of the country should be watching this closely. Metrc is already active in 29 states. BioTrack operates in 38 states and 13 countries. If the two dominate both sides of the compliance equation—regulatory and commercial—the market could lose all remaining diversity in cannabis tech.

What Cannabis Businesses Should Be Asking Right Now

  • Are we too dependent on one compliance platform?
  • What systems do our regulators rely on—and who owns them now?
  • Is there transparency in how data is handled across vendor partnerships?
  • Do we have a plan if our compliance tech provider fails or changes hands?
  • More importantly, is anyone lobbying for fair, competitive vendor access at the state level?

What Needs to Happen Next

The industry can’t afford to sleep through this. Here’s what needs to happen:

  • OCM and other state regulators must enforce transparency in vendor operations and relationships.
  • Procurement processes must prioritize competition, not convenience.
  • Industry groups and licensees must push back—hard—against systems that remove choice, raise costs, or weaken data protections.
  • Alternative tech solutions must be nurtured, not sidelined, if we want true innovation in cannabis.

The Metrc–BioTrack deal might look like a smart business move to shareholders. But for cannabis operators, who already carry the burden of strict compliance, thin margins, and complex rules, it’s a potential disaster in slow motion.

This is about control. This is about fairness. And this is about whether the cannabis industry gets the future it was promised, or one that looks a lot like Big Tech all over again.

The OCM hit pause. Now it’s time for the rest of us to hit back.

Written by Dawne M. Morris, CEO, Co-Founder of PROTEUS420, and an Advocate for Open, Transparent, and Fair Cannabis Tech