New Federal Law Threatens Hemp Businesses, Bans High-THC Products
A new federal law included in the latest spending bill is set to ban certain THC products, a move that could potentially eliminate many hemp businesses when it takes full effect in November 2026. The legislation prohibits products containing more than 0.4 milligrams of THC, the psychoactive compound in marijuana.
This strict threshold poses a significant threat to companies like Carolina Dream, a Lowcountry hemp manufacturer. Chief Strategy Officer Zachary Serrins warned, “It would wipe out our business pretty much entirely if the ban was put into effect.” He explained that the law’s language is so restrictive it could even prevent the production of non-psychoactive CBD products, such as pain creams, because the supply chain processes would violate the new THC limits. Carolina Dream currently produces sleep and pain relief aids, some with minimal or no THC.
However, the hemp industry’s reaction is mixed. Some leaders see the legislation as a necessary, albeit painful, step toward establishing clear regulations. Jack Waibel, Vice President of Operations at High Rise Beverage, which sells THC and CBD seltzers, believes the law creates a roadmap for future regulation. “For the frustration and the near-term concern that it causes, it actually creates a road map… of where the end path and end goal is where we all want to be,” Waibel stated.
Even Serrins acknowledged that the ban could ultimately act as “wind in our sails” to push for a sensible regulatory framework. He emphasized the importance of regulation for safety, particularly to keep psychoactive substances out of children’s hands and prevent adverse experiences from overconsumption. The industry generally views this law as a potential framework for future rules that would allow responsible adult use, despite the immediate threat it poses to current operations.
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