Efforts to expand where hemp-derived THC beverages can be sold in Colorado stalled this week as lawmakers were unable to gather enough support to move the proposal forward.
SB 164 sought to open the door for these drinks to be offered in restaurants and bars, rather than limiting sales to licensed marijuana dispensaries. However, the measure was withdrawn by its lead sponsor after it became clear that it would not secure the votes needed to pass.
Opposition from segments of the state’s cannabis industry played a significant role in the outcome, according to reporting by The Denver Gazette.
Backers of the bill argued that the legislation could help the state develop a structured and regulated market for marijuana-infused beverages, a category that has been gaining traction with consumers. Under current rules, hemp-based drinks containing up to 1.75 mg of THC can be sold in venues such as liquor stores and bars. The proposed measure aimed to raise that cap to 10 mg of THC in a standard 12-ounce serving.
It also included provisions that would have allowed convenience and grocery stores to carry products with THC levels capped at 3 mg. Advocates said such changes could make the products more accessible while still maintaining safety standards.
Interest in marijuana beverages has been growing, particularly among consumers seeking alternatives to vaping or smoking. Industry observers note that some beverage companies are exploring THC-infused options as alcohol consumption trends shift and more people look for products aligned with health-conscious lifestyles.
Still, the debate highlighted an ongoing divide within Colorado’s broader cannabis sector. Some licensed marijuana businesses have expressed concern about competition from hemp-derived products, which are regulated differently.
During testimony before legislators, Adam Foster of the Responsible Cannabis Coalition criticized the proposal, describing it as an attempt by out-of-state hemp companies to enter Colorado’s market without adhering to the same regulatory framework required of cannabis operators. He urged legislators to maintain consistent oversight for all intoxicating THC products under state law.
At the federal level, uncertainty is also growing. Many hemp-derived THC products are expected to lose legal protections later this year, and attempts to delay or prevent that change have so far been unsuccessful.
Recent draft language for the Farm Bill approved by the House did not include provisions safeguarding these products, raising concerns for businesses that rely on them. Lawmakers in Washington have introduced various amendments in response to the looming restrictions. Representative Andy Barr proposed creating a regulatory system for such products but later withdrew his amendment. Another effort by Representative James Comer to extend the deadline by one year did not advance.
The Senate is expected to develop its own version of the Farm Bill in the coming months. A bipartisan proposal that would allow states to decide whether to permit hemp-derived THC products has yet to be considered in committee, leaving the future of the industry uncertain for now.
Licensed cannabis firms like SNDL Inc. (NASDAQ: SNDL) will be watching how U.S. federal lawmakers resolve the hemp THC issue and how any resultant regulatory changes reshape the intoxicating beverages landscape.
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