Hemp Industry Faces Federal Threat, Lawmakers Respond
The American hemp and CBD market — valued at billions and supporting hundreds of thousands of jobs — is facing an unprecedented regulatory threat after Congress included language in a recent spending bill that effectively bans most hemp-derived products under federal law. In response, U.S. Senators Ron Wyden (D-Ore.) and Jeff Merkley (D-Ore.) have introduced the Cannabinoid Safety and Regulation Act (CSRA), a bill aimed at preserving and regulating hemp-derived CBD and cannabinoid products instead of allowing a federal prohibition that could cripple the industry, echoing global concerns about abrupt regulatory reversals following rapid cannabis and hemp market expansion.
The looming federal change, set to take effect in November 2026, would redefine “hemp” to include total THC content — not just delta-9 THC — and ban consumable products with more than 0.4 milligrams of total THC per container. Critics argue this would effectively outlaw most mainstream CBD and hemp wellness products, including gummies, tinctures, vapes, and beverages consumers use for anxiety, sleep, pain management, and general wellness.
What the Cannabinoid Safety and Regulation Act Would Do
Rather than outlaw hemp products, the CSRA proposes a federal regulatory framework that:
- Sets national safety standards for hemp-derived CBD and cannabinoid products
- Limits intoxicating cannabinoids to defined serving and container totals
- Requires third-party lab testing and quality assurance
- Establishes a minimum purchase age (e.g., 21+) where states lack age restrictions
- Allows states to impose stricter protections than the federal baseline
This approach aims to balance consumer safety with industry viability, giving hemp businesses legal certainty and preventing a patchwork of conflicting rules that could disrupt commerce across state lines.
Industry and Consumer Impact
The U.S. hemp and CBD industry has experienced explosive growth since the 2018 Farm Bill legalized industrial hemp as an agricultural commodity. Hemp-derived CBD products — ranging from oils and topicals to wellness supplements — have become mainstream in health-conscious markets. However, in recent legislative updates, including the government’s fiscal package earlier this year, provisions were added that threaten to eliminate the federal legality of most hemp-derived cannabinoid goods.
Proponents of the CSRA argue that a wholesale ban would devastate small businesses, farmers, and retailers who depend on hemp-derived CBD sales — even as the broader cannabis sector continues adjusting to regulatory pressure, market consolidation, and evolving consumer demand. The U.S. Hemp Roundtable and other advocacy groups have voiced support for the legislation, framing it as an opportunity to create a stable, science-based regulatory framework instead of outright prohibition.
Politics, Public Health, and Future Outlook
The introduction of the CSRA reflects deep political divisions over how hemp should be regulated. Some lawmakers and public health advocates have raised concerns about unregulated hemp-derived products on shelves nationwide, citing safety issues and inconsistent testing. Meanwhile, hemp businesses urge policymakers to consider balanced regulation that preserves consumer access without sacrificing safety or industry growth.
As the industry watches closely, the fate of the bill — and whether it can secure bipartisan support — will shape the future of hemp and CBD products in the United States. Lawmakers have a narrow window to refine and pass effective regulation before the federal timeframe for the impending bans takes effect.
Global Hemp Regulatory Context
This federal debate occurs against a backdrop of international attention on hemp and CBD markets. In Europe, regulatory frameworks vary dramatically, with some nations embracing CBD as a wellness ingredient while others maintain restrictive food and drug classifications. This divergence highlights the urgent need for cohesive U.S. policy to allow domestic producers and global competitors alike to thrive in a mature hemp market.
Published On: January 3, 2025
Source: Cannabis Business Times
https://www.cannabisbusinesstimes.com/hemp/news/15773946/2-us-senators-introduce-bill-to-keep-hemp-legal-install-regulations/