Congress includes ban on hemp-derived THC in funding bill that could affect a billion-dollar market

The Senate approved a government funding bill containing a provision to ban the sale of nearly all intoxicating hemp-derived products, including beverages, edibles, and vaporizers with THC, which became popular following the Farm Bill of 2018.

The measure "prevents the unregulated sale of intoxicating hemp-based or hemp-derived products, including Delta-8, online, at gas stations and corner stores, while preserving non-intoxicating CBD and industrial hemp products," according to a review by The Hill.

If the measure passes, the ban would take effect next year, affecting a market valued at about $30 billion by 2030, according to industry estimates.

The Farm Bill of 2018 legalized hemp products with less than 0.3% delta-9 THC by dry weight. The new provision would ban “any intermediate hemp-derived cannabinoid products," closing the loophole that allowed for the synthesis and mass marketing of delta-8 and other alternative THCs.

“Ninety-five percent of sales in the hemp market have what are now disqualifying levels of THC in them,” said Joe Gerrity, CEO of Crescent Canna. “The entire hemp beverage industry is gone. The THC market, the edible market, and inhalables. All gone. … I mean, there’s no saving grace here.” 

The products are now sold in gas stations, convenience stores, and chains like Target, with no age restrictions or uniform labeling.

A bipartisan coalition of 39 state attorneys general sent a letter to Congress last month demanding action to prevent the sale of these substances to minors.

Senate Majority Leader Mitch McConnell (R-Ky.), who pushed for hemp legalization in 2018, defended the measure Monday, saying, “keep these dangerous products out of the hands of children while preserving the hemp industry for farmers.”  

For his part, Sen. Rand Paul (R-Ky.) sought to remove the provision by amendment, but only he and Ted Cruz (R-Texas) voted in favor, according to The Hill review.