The funding bill passed by the US Congress and signed by President Trump is set to tighten restrictions on sales of hemp THC drinks in the country.
The bill, which has reopened the US government, includes a clause that narrows the definition of hemp.
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“Hemp-derived cannabinoid products” with THC content exceeding 0.3% will no longer be permitted for sale, nor any “final” hemp-based cannabinoid goods with more than 0.4mg of THC per container.
The law also prohibits “any other cannabinoids that have similar effects (or are marketed to have similar effects)”.
According to hemp and CBD industry coalition The US Hemp Roundtable, the move could see over 95% of hemp-extract goods banned from the market.
Although a setback, the industry is hopeful a solution can be found over the next 12 months before the regulations come into force.
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By GlobalData“While disappointed, the hemp industry is not defeated,” the US Hemp Roundtable said.
It noted producers have a year until the clause goes into effect on 13 November 2026, during which they can “help the federal government understand how to regulate hemp”.
Art Massolo, US Hemp Roundtable president, added: “The next year will be critical in determining the future of hemp. As a significant American industry, we are committed to sharing with Congress the real story about hemp. Because the truth is that good actors in the industry have created a self-regulation authority to protect consumers. But we need Congress’ help to keep the bad actors out. Hemp is here to stay – let’s do it right.”
Hemp was legalised for industrial use at the federal level through the Farm Bill in 2018, provided it contains less than 0.3% THC on a dry-weight basis.
Up until now, there has been no limit on the amount of THC, the psychoactive component, that hemp-based products could contain, which has allowed some producers to extract high concentrations of the THC for their products and sell them with limited regulation.
Jake Bullock, the co-founder of THC and CBD drinks maker Cann, sought to emphasise the potential positive impact of the tightening of the regulations.
In a LinkedIn post yesterday (14 November), Bullock insisted the move was “not a ban” but “a one year shot clock for us to get the rules we have always wanted”.
He said: “These high-potency, synthetic products have no place in the market. The industry’s inability to solve that problem is what led us to today. Shame on us.
“However, the one year shot clock gives the good actors an opening for regulation. Regulation that gives Americans access to the lowest-potency drinks, and keeps them away from minors. Alcohol has been doing this for nearly a century, and we should leverage their rules as a model for these adult beverages.”
In October, a coalition of 39 US state attorneys general urged the US Congress to tighten the federal definition of hemp to ban the sale of “intoxicating” hemp-based THC products sold outside state-regulated cannabis systems.
In a letter to Congress, the group of lawmakers said the federal definition of hemp in the 2018 bill needed to be changed “to prevent the continued sale of unregulated, intoxicating THC products”.
Following on from the lawmakers’ call, a group beverage-alcohol trade associations also urged Congress to remove hemp-derived THC products from the market.
Trade association The Hemp Beverage Alliance (HBA) said it “remains fully confident in the future of the industry, despite this week’s setback in Congress”.
“For people who want to produce, distribute, sell or enjoy hemp beverages, nothing changed this week, nothing will change next week, and nothing will change next month, or even next year,” president Christopher Lackner said.
”If there is a silver lining to this terrible decision, it is that the long-term future of the hemp industry is now front and center with Congress.”
