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New federal legislation signed into law by President Donald Trump effectively bans most intoxicating hemp-derived products, sending shockwaves through an industry that blossomed under a legal loophole in the 2018 Farm Bill. The provision was included in a major appropriations package passed by Congress to end a prolonged government shutdown, fundamentally reshaping the legal cannabis landscape in the United States.
The House of Representatives passed the spending bill with a 222-209 vote, followed by Senate approval, before it was signed by the president. The new law specifically targets intoxicating cannabinoids like Delta-8 THC, which are synthesized from legal hemp. The 2018 Farm Bill legalized hemp by defining it as cannabis containing less than 0.3% Delta-9 THC, the primary psychoactive compound in marijuana. However, it did not anticipate that other psychoactive compounds could be produced from hemp-derived CBD, creating a regulatory gray area that allowed for a national market for these products.
This legislative action is the culmination of a growing debate over the unintended consequences of the 2018 law. Lawmakers and regulators had expressed concern about the sale of unregulated, intoxicating substances, often available in gas stations and smoke shops without age restrictions. The new restrictions were debated in committees, as detailed in a report from the Congressional Research Service, which highlighted congressional intent to prohibit the commercial production and sale of such products.
The economic stakes are substantial. The hemp-derived cannabinoid market has grown into a multi-billion dollar sector, with some estimates suggesting it is worth as much as $28 billion. Thousands of small businesses, from farmers to manufacturers and retailers, now face an existential threat. Industry advocates argue the move will stifle innovation and punish businesses that operated in good faith under the previous legal framework. Companies are now scrambling to understand the full scope of the ban and its enforcement, with many fearing a complete wipeout of their business models. The law represents a significant reversal from the federal government’s previous move toward cannabis liberalization.
