Feds Kill Buzz: Hemp THC Goes Up In Smoke

The reopening of the Federal Government last month was a good thing, but the spending bill that allowed it to do so? Not so much, especially for those who produce, sell and consume hemp derived THC. Thanks to an effort to “close the Hemp loophole,” in just under a year, it’s going to be illegal. (To be clear, we are speaking of THC and other intoxicating cannabinoids that are hemp derived, and not marijuana-derived THC. We’re safe…for now.)

To be more precise, as Forbes explains “…Rather than measuring THC as a percentage of the plant material or product medium, regulators would calculate “total THC per container” for consumables, capping it at as little as 0.4 milligrams, effectively eliminating nearly all current infused products such as gummies, beverages, and vapes.” It also, as MJBiz writes, bans cannabinoids that “…are not capable of being naturally produced by the cannabis plant, or synthesized or manufactured outside the plant.” It’s also going to end the THCA flower industry, which allows unregulated sales of cannabis flower, often through mail order.

The 2018 Farm Bill legalized hemp, which unleashed CBD into the mainstream. Soon after, researchers began producing a form of THC from hemp that got you high. They also found that of the hundreds of minor cannabinoids in hemp, many could be processed and concentrated to get you even higher than the THC.

Because the THC and other cannabinoids were derived from hemp, a legal crop with far fewer rules, regulations and restrictions than cannabis-derived products, hemp THC started showing up everywhere, in everything.

Last month, I wrote about a major expansion of hemp THC-infused beverages carried in retailers such as Target, and showing up locally in McMenamins’-produced drinks now sold alongside their beers. But as Oregon has more than enough cannabis for the entire state, it’s not until you travel to a state without regulated cannabis that you grasp the economy of hemp-derived THC.

On a trip to Nashville a couple years ago, I was stunned by the number of store front ads offering “THCA, Delta 10 and 11, HHC” in flower, gummy and especially concentrate form. All those products, stores, and employees add up to an industry worth over $28 billion, employing north of 325,000 people, and generating nearly $14 billion in wages. Don’t forget taxes – Tennessee is estimated to have taken in over $10 million in taxes in one year.

For those seeking medical/addiction/stress relief using hemp-derived cannabinoids, it’s a lifeline in states that have no legal access to cannabis. The myriad benefits of the industry were not embraced by all, with the criticism coming from a number of corners. One indisputably valid criticism is the lack of regulation of the products. Purity, dosage, even active ingredients are often undependable with results ranging from unpleasant to life threatening. Add wide-spread access resulting in underage user issues, and calls for greater oversight and regulation were convincing.

Some critics wanted more transparency, and some didn’t want the industry to exist at all. And that made for some very interesting political bedfellows.

Of course, you have the prohibitionists who think anything intoxicating other than nicotine and alcohol is the work of the devil. That includes friend of the devil Sen. Mitch McConnell who spearheaded the effort. If there is a man alive who wholly embodies not wanting anyone to have any pleasure in any form, it’s Mitch.

But Mitch had support from a coalition of alcohol and cannabis industry players, who did not appreciate the competition. Alcohol lobbyists wrote that congress should, per MJBiz Daily, “immediately remove hemp-derived THC products from the marketplace until” federal rules are imposed.” Cannabis lobbyists called for the same, perhaps understandably concerned about the uneven playing field between the two industries.

But regulation and oversight were bypassed in favor of the outright ban, which is going to have a devastating impact and wipe out what one report predicts are 95% of hemp THC businesses. Court challenges are inevitable, but the chill is already being felt by these businesses, who are wondering how, and if, they can prevail. Of course, de-scheduling cannabis would address all of this. At least CBD is still legal (for now).

This article appears in the Source December 11, 2025.