President Trump has offered a boost to the struggling hemp sector with his executive order that directs federal agencies to accelerate the reclassification of cannabis and explore Medicare coverage for CBD products. The move arrives as the industry prepares for a major policy fight in Congress over rules that could sharply restrict hemp-derived goods.
The sector has faced mounting pressure since November, when lawmakers inserted new language into a government funding package aimed at tightening oversight of hemp-derived products. The provision was designed to close a regulatory gap that allowed hemp products to be sold widely with limited federal scrutiny. Industry representatives argue the change goes too far and could effectively wipe out much of the consumer CBD market.
The executive order, signed last week, signals a shift in tone at the federal level. It followed sustained lobbying by cannabis advocates, including some with longstanding ties to the president. While the order does not alter the law, it calls on administration officials to collaborate with Congress to revise existing statutes, allowing certain CBD products to remain available while addressing those that pose legitimate health concerns.
Hemp-derived CBD remains legal, and hemp is not classified as a controlled substance. Still, industry leaders say the president’s directive gives them political momentum. U.S. Hemp Roundtable general counsel Jonathan Miller described the order as a clear rejection of the restrictive language adopted in the funding bill. He added that it strengthens the industry’s position as lawmakers revisit the issue over the coming months.
Hemp was legalized through the 2018 Farm Bill, originally envisioned for uses such as farming and manufacturing. However, broad statutory definitions and limited oversight allowed some producers to concentrate or chemically alter THC derived from hemp, resulting in products that critics say can be just as potent as marijuana.
The funding bill includes a one-year delay before the new limits take effect, giving companies time to press for changes. Thomas Winstanley, an executive at Edibles.com, said businesses are seeking at least an additional six months ahead of the January 30 funding deadline, hoping lawmakers will adjust the policy.
Some advocates caution that the administration’s support is narrowly focused. The order directs the attorney general to move faster on shifting marijuana from Schedule I, reserved for substances with no accepted medical use, to Schedule III, which includes most prescription medications. That change would not protect companies selling synthetic or highly intoxicating THC products under the hemp label.
Chris Lindsey of the American Trade Association for Cannabis & Hemp said the intent is to carve out space for legitimate CBD producers, not businesses operating like marijuana retailers. He argued that the current definition is so sweeping that it risks blocking lawful products from the market. In his view, the president’s message to Congress is to revisit the language and ensure responsible CBD companies are not caught in the dragnet.
As the regulatory landscape for hemp and marijuana evolves over the coming months, firms like Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) will be keeping tabs to analyze how the new regulations impact their business projections.
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