Sen. Mitch McConnell closed a loophole in a hemp law. Now $28 billion THC industry fights to survive

Key Points:

• Congress voted to close a loophole in federal hemp law that allowed impairing hemp products with higher THC levels to be sold, threatening to eliminate a multibillion-dollar market including THC seltzers and edibles.
• The new hemp THC ban limits THC in hemp products to 0.4 milligrams per container and was delayed from November to December 2023 to allow Congress more time to consider regulation instead of a ban.
• Industry advocates warn the ban could cause a $28.3 billion revenue loss, displace 225,000 jobs, and reduce state tax revenues by $2.1 billion, while proposing age restrictions and THC limits to save the market.
• Some hemp businesses face closure or pivoting to other products due to the ban, while opponents argue the products pose public health risks and support tighter regulation, including the regulated marijuana industry.
• The ban ends interstate sales of impairing hemp products but may allow in-state sales where legal, with industry insiders acknowledging the risks of operating in a previously unregulated loophole.