The U.S. Senate’s recent approval of a broad spending bill to end the longest federal government shutdown includes a measure that would prohibit hemp-derived THC products, marking a major shift in national cannabis policy since the passage of the 2018 Farm Bill.
The proposal, which has now been signed into law, seeks to close what lawmakers describe as a loophole that has allowed intoxicating hemp products to flourish outside state-regulated marijuana markets. While Senator Rand Paul(R) attempted to strike the new language from the legislation, the White House indicated that President Trump supported the measure.
The debate represented another chapter in an ongoing fight over hemp-derived THC products such as Delta-8 and THCA flower. These products, which can produce the same psychoactive effects as marijuana, are being sold widely online and in convenience stores across the country. Critics argue they exploit the Farm Bill’s definition of hemp, allowing unregulated marijuana to be sold under the guise of legality.
Major retailers have started stocking hemp-based THC drinks even as opponents, including state-regulated cannabis industry groups and prohibition advocates, warn of potential risks to public health. Alcohol industry representatives have also weighed in, with leading trade associations announcing their support for the ban.
Hemp industry leaders, however, warn that the ban could devastate hemp producers. The U.S. Hemp Roundtable noted that the language could effectively eliminate most of the $28 billion hemp market.
The Senate Appropriations Committee stated that the measure would halt sales of intoxicating hemp-based products, including Delta-8 THC, while maintaining the legality of non-intoxicating industrial hemp and CBD.
The revised definition of hemp limits THC content, including its acidic precursor THCA, to no more than 0.3% by dry weight. It also excludes compounds not naturally produced by the marijuana plant or those synthesized in a lab, such as HHC and THC-P.
Now that it has been enacted, the rule bans most hemp-derived drinks currently sold in stores and bars, allowing only products with no more than 0.4 milligrams of THC per serving.
Senator Paul had urged colleagues to vote on an amendment that would remove the restrictive language, despite his actions likely putting him at odds with Trump. Meanwhile, representatives from major alcohol trade associations, including the Beer Institute and Wine Institute, pressed senators to reject Paul’s proposal, warning that his actions could jeopardize efforts to reopen the government.
For the regulated cannabis industry, the move is a win, seen as a long-overdue step toward aligning federal law with current market realities.
Marijuana industry players like Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) will be watching how the marijuana and hemp retail landscape is reshaped by this newly passed law.
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