President Trump

The American hemp industry now faces an existential challenge after Congress approved and President Trump signed into law an effective ban on hemp cannabinoids last November. Under the language of the ban, which is set to go into effect this coming November, a huge percentage of hemp products will become illegal, defined as controlled substances because of their cannabinoid content.
A new report, <a href="https://www.scribd.com/document/1014497711/TeamHemp-WhitePaper-V2-1" rel="noopener noreferrer nofollow">The Hemp Industry Prospectus: Market Overview + Regulatory Pathways</a>, shows how lawmakers, industry interests, and other stakeholders are working to save the <a href="https://whitneyeconomics.com/" rel="noopener noreferrer nofollow">$28 billion hemp cannabinoid industry</a> by attempting to reasonably regulate the industry instead of criminalizing it.
As the Prospectus notes, hemp production was illegal for most of the 20th Century, but was legalized under the 2018 farm bill, with hemp defined as cannabis plants containing less than 0.3 percent tetrahydrocannabinol (THC) by dry weight. Since then, the industry has grown dramatically through the production and sale of a wide variety of products. Those range from textiles and industrial goods to wellness-oriented cannabidiol (CBD) drinks, gummies, and edibles, and intoxicating products derived from cannabinoids extracted from hemp plants.
It is precisely these hemp-derived intoxicating cannabinoids and the rapid expansion of their markets that drove Congress to include an effective ban when it passed the bill to end the federal government shutdown in November. That bill included a strict potency cap, with consumer products limited to 0.4 milligrams of THC per container, redefined the THC limit by shifting from measuring only delta-9 THC to "total THC," which includes delta-8, delta-10, HHC, and THCA, and banned synthetic cannabinoids—those synthesized outside the plant, such as delta-8.
But Congress crucially delayed implementing the ban for one year—until November 12, 2026—giving stakeholders time to come up with a regulatory alternative to the ban. The weeks and months between now and then will determine whether hemp continues to be a viable industry in the United States or not.
The interested parties are now working to come up with alternatives to the "hemp ban." Two pathways have emerged, one short-term and one long-term: Short-term, advocates are calling for the one-year moratorium on enforcement of the ban to be extended to three years, given the parties involved more time to find a way to a permanent solution. Long-term, the most economically and politically viable way forward is not prohibition but the regulation of the hemp market. Both industry advocates and lawmakers are presenting proposals, which the Prospectus lays out in detail.
On the industry side, the most comprehensive proposal is from a group of industry experts and analysts known as the Hemp Industry Working Group, which released their proposed policy roadmap for hemp regulation,<a href="https://hempinitiatives.org/hemp-industry-working-group-addresses-2025-legislative-and-policy-challenges/" rel="noopener noreferrer nofollow">Pushing Progress</a>, in October. Their plan would split regulation of hemp between the Agriculture Department (for growing grain and fiber), the Food &amp; Drug Administration (for regulating non-intoxicating cannabinoid-producing hemp), and the Bureau of Alcohol, Tobacco and Firearms (for regulating hemp-derived intoxicating cannabinoids.)
"The Farm Bill governs agriculture, not chemistry," the authors of the proposal conclude…. "[Congress] must now legislate clear, fit-for-purpose authority that distinguishes industrial from floral Hemp and directs oversight based on impairment potential and intended use. A precise, three-lane framework restores regulatory clarity, protects public safety, and provides a durable foundation for America’s evolving hemp economy."
There is some knotty legislative maneuvering ahead and only a few months to get it done. The Prospectus also notes a call from the US Hemp Roundtable, representing dozens of companies and advocacy groups across the hemp spectrum, for an18-month extension of the hemp ban moratorium, which is scheduled to end in November, until June 2028.
"Unfortunately, one year is simply not enough time for farmers, state regulators, or the industry to craft a long-term solution that protects consumers. Extending it by an additional 18 months to create a full 2.5-year moratorium is essential," the Roundtable declared. "An 18-month extension will provide the time needed for Congress to develop a responsible, bipartisan regulatory framework and for states and farmers to adjust accordingly," the Roundtable concluded.
The Prospectus covers all the legislative responses to the hemp crisis so far, including one directly responsive to the Roundtable's call for an extended moratorium. The Hemp Planting Predictability Act (<a href="https://www.congress.gov/bill/119th-congress/house-bill/7010" rel="noopener noreferrer nofollow">House Resolution 7010)</a> would delay the looming ban on most hemp-derived cannabinoids by an additional two years. It was filed in January by House Agriculture Committee member Rep. Jim Baird Baird (R-IN), and two key congressional players on agricultural policy, former Kentucky agriculture commissioner and hemp supporter Rep. James Comey (R), chair of the House Oversight and Accountability Committee, and House Agriculture Committee Ranking Member Rep. Angie Craig (DFL-M, as well as Reps. Tim Moore (R-NC) and Gabe Evans (R-CO).
Then there is the Cannabinoid Safety and Regulation Act (<a href="https://www.congress.gov/bill/118th-congress/senate-bill/5243?q=%7B%22search%22%3A%22cannabinoid+safety%22%7D&amp;s=3&amp;r=1" rel="noopener noreferrer nofollow">S. 5243</a>) , authored by Oregon Democratic Sens. Ron Wyden and Jeff Merkley. It would cap THC at 5 mg per serving and a maximum of 50 mg per container for gummies and other hemp products besides beverages. Beverages could contain up to 10 mg of THC. The federal limits would only apply in states that do not set their own caps. The bill would also direct the Food &amp; Drug Administration (FDA) to create a Center for Cannabinoid Products to regulate the industry, including testing hemp-derived products for strength and dangerous adulterants and ensuring they are not marketed to children.
That bill has the backing of the Hemp Beverage Association, the US Hemp Roundtable and Wine and Spirits Wholesalers of America. But, the Prospectus warns, this is a bill from two Democrats and is thus unlikely to progress in the Republican-controlled Senate.
A more likely vehicle for hemp cannabinoid regulation is <a href="https://static1.squarespace.com/static/645bd2cad30456365c8f62b8/t/68acd92c310efd0c1d131ed9/1756158252072/CHP_02_xml.pdf" rel="noopener noreferrer nofollow">pending legislation</a> from Rep. Morgan Griffith (R-VA). His draft bill would amend the federal Food, Drug, and Cosmetic Act (FDCA) to provide for the regulation of cannabinoid hemp products. Under the bill, consumable hemp products, including beverages, will be expressly permitted. Hemp beverages with non-intoxicating cannabinoids can contain up to 10 mg per serving, while hemp beverages with intoxicating cannabinoids are limited to .2 mg per serving.
The Hemp Beverage Association likes what it sees so far in this bill, too: "We are thrilled to see positive regulatory language coming out of DC and forward to continuing to work with Rep. Griffith’s office to further develop this legislation," the group said in a <a href="https://www.hempbeveragealliance.org/news/rep-morgan-griffith-releases-draft-hemp-bill" rel="noopener noreferrer nofollow">news release</a> announcing the draft bill's circulation.
There are a handful of other hemp bills filed in the current Congress, and the Prospectus examines all of them. Check out the Prospectus for a comprehensive evaluation of the landscape, and to keep up to date with hemp developments, keep an eye on the <a href="https://roundtable.io/news/american-hemp-monitor" rel="noopener noreferrer nofollow">American Hemp Monitor</a>.

New Report Lays Out Paths to Regulated, Prosperous Hemp Cannabinoid Industry

TheStreet Roundtable

Other articles published on Mar 20, 2026

Join our free newsletter for daily crypto updates!