A new federal law, set to take effect in one year, threatens to ban hemp-derived THC beverages, a rapidly growing market estimated to be worth tens of billions of dollars.
These drinks, legally sold in dozens of states by leveraging the 2018 Farm Bill's definition of hemp (containing no more than 0.3% THC), have become popular as an alternative to alcohol. Companies like Pure Shenandoah have seen significant revenue growth, with some distributors already pausing or halting expansion plans due to the impending restrictions.
Industry leaders and policymakers are discussing potential compromises, such as standardizing tests and requiring age verification, to navigate the regulatory landscape and ensure consumer safety while preserving the market. The situation is complicated by ongoing discussions about potentially rescheduling cannabis at the federal level.
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