US Congress postpones ban on hemp-derived THC products until December 11 — Fortune

In the United States, the entry into force of a federal ban on psychoactive THC products made from hemp has been postponed from November 12 to December 11. A short-term government funding bill signed by President Donald Trump last month gave Congress additional time to consider possible regulation of these products instead of a complete ban, Fortune reports.

Loophole in the hemp law

The 2018 Farm Bill, whose advancement was supported by Republican Senator Mitch McConnell, legalized industrial hemp. It defined hemp as containing less than 0.3% delta-9 THC by weight. This allowed the sale of beverages and food products that met this threshold but still contained enough THC to cause intoxication.

Hemp-derived THC vape oils, gummy candies, snacks, sodas and other products became widespread on the market. Some of them were sold at gas stations and in stores, including to teenagers. Dozens of states began regulating or banning such goods.

At the end of last year, McConnell included a ban on hemp-derived THC in a measure that ended the longest government shutdown in US history. The provision sets a limit of 0.4 milligrams of THC per container and was due to take effect a year later.

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Industry proposes an alternative

Industry representatives advocate selling psychoactive products only to people aged 21 and older, limiting the amount of THC per package, and banning imported cannabis compounds. According to Whitney Economics, a company that researches this market, the ban could reduce retail revenue by $28.3 billion, result in the loss of 225,000 jobs, and cut potential state sales tax revenue by $2.1 billion.

The owners of Kentucky-based Cornbread Hemp said they are prepared to limit THC content in their products, for example to 5 milligrams, but that a 0.4-milligram limit would destroy their business. Jonathan Miller, general counsel for the industry group U.S. Hemp Roundtable, also said such a threshold could ban even some non-psychoactive CBD products, including lotions.

At the same time, the ban is supported by the regulated legal marijuana industry, which considers hemp-derived THC products unfair competition. Its representatives note that after interstate sales are halted, some products could potentially be sold in the intrastate markets where they are produced, subject to local regulation.