$28B hemp THC industry fights to save itself from looming federal ban

Key Points:

• The U.S. market for hemp-derived THC products, including gummies and beverages, faces a potential shutdown due to a new federal ban limiting THC in hemp products to 0.4 milligrams per container, closing a legal loophole that allowed these products to flourish.
• Industry advocates and some lawmakers are pushing to regulate rather than ban these products, proposing age restrictions and THC limits higher than the 0.4 milligrams, arguing that the current cap would devastate businesses and cost jobs.
• The ban, championed by Senator Mitch McConnell, aims to curb unregulated, impairing hemp products that have spread widely, including to minors, and that compete with the regulated legal marijuana market.
• The hemp THC ban could reduce retail revenues by $28.3 billion and displace 225,000 jobs, according to industry reports, while opponents cite public health concerns and support the ban as necessary to protect consumers.
• Some companies have already scaled back or ceased operations amid uncertainty, while others hope to adapt by producing non-impairing hemp products or shifting to legal in-state markets where possible.