Nov. 12 is fast approaching, and federal lawmakers and hemp industry supporters have been actively working to reverse the virtual hemp-THC ban. Meanwhile, a few states have started to rein hemp sales into their licensed cannabis markets.
Despite the confusion, the hemp market has been fairly stable, but some farmers are exiting the market, according to industry sources. More importantly, some major banks are beginning to change their attitudes toward serving hemp businesses.
“We’ve got banking and insurance folks balking and who don’t want to be involved in hemp,” Jonathan Miller, general counsel of the U.S. Hemp Roundtable, told CRB Monitor News. He added that credit card companies are also looking to “get out.”
The FY2026 Agriculture Appropriations Act signed by President Donald Trump changes the definition of legal hemp effective Nov. 12. Instead of the plant needing to contain less than 0.3% of delta-9 THC, it must have less than 0.3% total THC. Hemp-derived cannabinoid (HDC) products cannot contain synthetic cannabinoids or cannabinoids “synthesized or manufactured outside the plant,” which seemingly prohibits delta-8 THC from being converted to delta-9.
Most importantly, final HDC products cannot contain more than 0.4 milligrams of THC per container, which limits many non-intoxicating CBD products, which Trump supports.
In fact, in Trump’s Dec. 18 order to move marijuana to Schedule III of the Controlled Substances Act, Trump also called on Congress to reexamine the hemp-THC ban as he allowed Medicare to cover CBD in certain government trials.
His Office of Management and Budget (OMB) also issued a “Statement of Administration Policy” on June 4 supporting changing the definition in another appropriations bill, the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act of 2027.
“Moreover, the Administration welcomes the opportunity to work with the Congress to, at a minimum, update the statutory definition of final hemp-derived cannabinoid products to allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving the Congress’s intent to restrict the sale of products that pose serious health risks,” the OMB statement said.
The House approved the bill June 4 without any changes to the hemp definition.
Already, at least four federal bills have been filed to repeal the ban, delay it for two years or put HDC products under a federally regulated system. Miller said Rep. Andy Barr and Sen. Don Wyden also plan to introduce legislation to help the industry soon.
Barr’s spokesperson confirmed the congressman is working on a bill, but no final version was available, as of June 16.
Meanwhile, the House of Representatives passed the overdue Farm Act update on May 19. The bill does not address the pending change. It simply changes the 0.3% THC limit from delta-9 to total THC. It also eliminates the 10-year ineligibility of someone convicted of a felony crime related to a controlled substance from becoming a registered industrial hemp producer.
Miller said he’s “encouraged by what the White House is doing and saying” to reverse the ban.
He said the Roundtable is working with legislators to get bills introduced, schedule hearings, and “find the right vehicle” to get change passed. Miller said he doesn’t think reform will be in the Farm Bill; it would more likely be passed in a continuing resolution.
Thomas Winstandley, president of Edibles.com, is working with stakeholders on changing the law. In an emailed statement to CRB Monitor News, he said the policy environment remains “highly dynamic.”
“What we’re seeing is a growing effort among policyholders, industry participants, and regulators to establish a durable regulatory framework that preserves consumer access while addressing legitimate safety and compliance concerns,” Winstanley said.
He continued, “The fact that there are active discussions occurring across both branches of government demonstrates a recognition that the industry would benefit from a more predictable regulatory environment.”
Optimistic hemp market holds steady, for now
From a supply-chain perspective, Winstanley said conditions remain relatively stable. “While some operators have chosen to reduce exposure to the category amid ongoing uncertainty, we have not seen widespread disruption.”
Chris Karazin, chief executive of North Carolinia-based HDC manufacturer and retailer Carolindica, agrees, having seen “minimal difference” in the last six months. In fact, the company opened another store in February. Carolindica now has four stores in the Raleigh area with about 40 employees.
And while hemp is still big in North Carolina, where marijuana remains illegal, most profits are going toward industry advocacy at the federal and state level.
“This year is very much a defensive year,” Karazin said.
The next three months will be critical as it takes about three months from hemp seed to sale. Manufacturers, retailers and HDC brands will need to make decisions around inventory planning, production schedules and capital allocation.
“In those circumstances, market uncertainty can create both pockets of scarcity and increased promotional activity as businesses adjust inventory positions,” Winstanley said.
Karazin has also heard that banks are getting concerned and may start dropping accounts. Regardless, Karazin plans to do his best to serve Carolindica customers within whatever law is in place.
“Even if our shelves are decimated in December, we’ll still be around,” he said.
While Karazin is supporting change at the federal level through the Hemp Industry & Farmers of America, he’s more focused on state-level regulation. He’s been pushing SB 265, introduced last year, that would create a regulated HDC market in North Carolina, including licensing retailers.
States hold varying attitudes about HDC products
Meanwhile, more than 20 states considered legislation to regulate or ban HDC products so far this year. Six governors ultimately signed bills ranging from limiting THC in beverages to requiring licensing or registration for nearly all HDC products.
Most recently, Illinois Gov. J.B. Pritzker signed SB 3222, known as the Illinois Hemp Act, on June 12.
The large piece of legislation brings previously unregulated intoxicating hemp products into the regulated cannabis market, effective in November. It’s new definition of a “final consumer hemp cannabinoid product” that can be produced and sold outside licensed businesses aligns is the same as the new federal definition, with no more than 0.4 milligrams of total THC per container. Sales to people under age 21 are banned immediately.
The omnibus bill also expands patient access and social equity business opportunities in the regulated cannabis market, including increased possession limits and more infuser licenses. Labs will need to be licensed, rather than just registered.
“This landmark legislation closes the intoxicating hemp loophole while bolstering equity and oversight and expanding medical access,” Pritzker said in a press release. “Illinois is committed to cultivating a cannabis industry that benefits diverse businesses across the state and prioritizes accessibility, and I am proud to sign this measure into law.”
In Virginia, Gov. Abigail Spanberger signed SB 543, which would require a registration system for HDC product containing up to 2 milligrams of total THC and with CBD of at least 25 times the amount of THC per package. But then on June 22, in a budget package approved by the state Sentate that also legalizes adult-use marijuana, the 25-times CBD/THC ratio reportedly got cut.
Barbara Biddle, president of the Cannabis Small Business Association, said this would make the products she sells at District Hemp Botanicals, illegal beginning Aug. 15 until the recreational cannabis market is running in July 2027, according to an op-ed she wrote for Marijuana Moment.
“For hundreds of small businesses and the thousands of people they employ, that is not a minor amendment. It is an extinction event with a date attached,” Biddle said.
Missouri also brings HDC products, with the same definition of the federal law, into its state licensing network with the enactment of HB 2641 in April. The law becomes effective Nov. 12.
Other state hemp bills signed into law in the first half of 2026 include increasing the hemp-THC limit in beverages in Connecticut; allowing hemp licensees to hold cannabis licenses in Minnesota, and allowing hemp beverage sales of up to 5 milligrams of THC per serving or 10 milligrams per can until Nov. 13 in New Jersey.
There are currently HDC-related bills pending in five states: California, Delaware, New Hampshire, South Carolina and North Carolina.
Bills introduced in 11 states went nowhere this year: Alabama, Georgia, Hawaii, Indiana, Kentucky, Maryland, Nebraska, Oklahoma, Pennsylvania, Rhode Island and Wisconsin.
