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Cannabis

Industry Reacts to Hemp THC Ban

Over the next year, organizations will encourage regulation.

Cannabis Law

Image Source: Courtesy of Getty Images

December 8, 2025

President Trump has signed a government funding bill that also prohibits products containing more than 0.4 milligrams of hemp-derived THC per package, effectively banning most hemp THC products.

The hemp-derived THC market has exploded since the passage of the 2018 Farm Bill, ushering in beverages, gummies and other products that are available nationwide direct-to-consumer and at certain retailers, including liquor stores.

Concerns arose in the state-regulated cannabis industry about the Farm Bill loophole, and lawmakers have also taken issue with the availability of synthetic compounds such as delta-8-THC.

The ban goes into effect in November 2026, giving the hemp industry roughly 12 months to react. The Hemp Beverage Alliance says it’s “business as usual” until next year, noting production, distribution and retail will continue without interruption for the next year.

“This year is a critical window to engage policymakers and demonstrate that regulation builds clarity, clarity builds confidence, and confidence builds a stronger, more transparent industry for consumers and businesses alike,” the alliance said in a LinkedIn post. “HBA is coordinating this work across the supply chain — from ingredient suppliers and manufacturers to distributors and retailers.”

The U.S. Hemp Roundtable expressed disappointment, noting the ban also applies to most CBD products.

“Businesses are deeply disappointed by the decisions of Congress and their openness to receiving false information so easily,” says Art Massolo, U.S. Hemp Roundtable president and Cycling Frog VP of business development. “The next year will be critical in determining the future of hemp. As a significant American industry, we are committed to sharing with Congress the real story about hemp. Because the truth is that good actors in the industry have created a self-regulation authority to protect consumers. But we need Congress’ help to keep the bad actors out. Hemp is here to stay – let’s do it right.”

Industry group ONE HEMP echoed those sentiments, noting it is “engaging with lawmakers, industry leaders, and advocacy groups to advance balanced, science-based regulations that distinguish legitimate CBD wellness products from harmful synthetic alternatives.”

"This is a misguided policy driven by political expediency, not science," says John Harloe, general counsel at Village Farms Global Cannabis and ONE HEMPmember.  "Lawmakers are conflating the entire hemp industry with intoxicating products like delta-8 synthetics, ignoring decades of research showing that full-spectrum hemp products are safe, non-intoxicating and essential for consumer wellness. At the same time, ONE HEMP is grateful to the Congressional leaders who continue to champion evidence-based hemp regulation and work toward balanced solutions."

KEYWORDS: hemp & hemp-derived products regulations

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