Federal lawmakers are taking steps to crack down on intoxicating THC products made from hemp, signaling their intent to close the “hemp loophole” that has allowed these products to thrive in a gray area.
On Thursday, the Senate Appropriations Committee unanimously approved a measure, introduced by Senators Jeff Merkley and Mitch McConnell, that would redefine hemp under federal law. Though the changes wouldn’t kick in for a full year, hemp industry groups warn that the new rules would effectively outlaw the vast majority of hemp-based products currently on the market.
There is growing bipartisan momentum in Washington to tighten regulations on hemp products. Since the passage of the Farm Bill 2018, which legalized hemp, products containing psychoactive compounds like delta-8 and delta-10 THC have become widely available in the form of gummies, drinks, and vapes.
Some states have taken steps to crack down on these products, but federal regulations have yet to catch up. Now, Senator McConnell is pushing to close what he sees as a major gap in the law—one he helped create when he championed the 2018 bill.
The newly passed fiscal 2026 Agriculture Appropriations Bill introduces new language that draws a line between “hemp-derived cannabinoid products” and “industrial hemp.” It also updates how total THC content is measured, including compounds like THCA, which had previously slipped through due to a lack of clarity in the original legislation.
Under the measure, “industrial hemp” is defined as cannabis sativa with a total THC concentration (both THC and THCA) of no more than 0.3%. It must also be grown for uses such as textiles, fuel, food, or other purposes that do not involve cannabinoids.
On the other hand, “hemp-derived cannabinoid products” include anything that delivers synthetic THC, such as delta-10 and delta-8, and would be banned under the proposed rules.
The U.S. Hemp Roundtable chair, Jonathan Miller, said the bill would outlaw over 90% of current hemp products. While the one-year delay offers time to make changes, he argued that a total ban isn’t the answer.
Cornbread Hemp co-founder Jim Higdon echoed those concerns. He pointed to state-level regulations that have established strict age restrictions and safety rules while still giving adults legal access to hemp-based THC. “We agree that the hemp market needs work,” Higdon said. “But banning nearly everything isn’t the solution.”
The Senate’s move closely follows a similar proposal from House Republicans in June, which also called for tough restrictions on hemp-derived THC products.
The marijuana industry, including firms like Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED), will be watching the discussions in Congress and how those regulations could reshape the hemp and cannabis markets.
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