The “Wild West” era of hemp-derived cannabinoids is rapidly coming to a close. As a federal deadline looms that will effectively ban most intoxicating hemp products, individual states are taking proactive steps to overhaul their own regulations.
The shift follows a significant change in federal policy. After years of the “loophole” created by the 2018 Farm Bill, which allowed products like Delta-8 THC and THCA flower to flourish, President Trump recently signed a budget bill that redefines hemp. Starting this November, most intoxicating hemp-derived products will be reclassified as controlled substances.
In response, state regulators and lawmakers are moving to align their local markets with this new federal reality.
Rhode Island: Targeting the Beverage Market
In Rhode Island, the hemp-derived beverage market is currently under the microscope. While over 100 retailers previously obtained permits to sell THC-infused drinks (limited to 1mg per serving), the state’s Cannabis Control Commission (CCC) is now recommending a strict ban on these products at any establishment holding a liquor license.
The move has created a clear divide in the state:
- Cannabis Operators: Applaud the move, viewing hemp-derived THC as unregulated competition that avoids the high taxes and safety standards of the adult-use market.
- Hospitality Industry: Opposes the ban, arguing that THC beverages provide a vital revenue stream as traditional alcohol consumption declines.
While the CCC issued its recommendation on March 1, formal rule changes could take until 2027, depending on the speed of federal enforcement.
Pennsylvania: Closing Loopholes in Real-Time
Pennsylvania has long struggled to pass adult-use cannabis legislation, but a new proposal aims to regulate the existing hemp market regardless of the outcome of full legalization.
Senator Dan Laughlin recently amended Senate Bill 49 to include a new, tighter definition of hemp. The goal is to mirror the upcoming federal changes and eliminate the “loopholes” that allowed intoxicating products to be sold with little oversight. By aligning state definitions with federal law now, Pennsylvania hopes to ensure their regulations remain enforceable once the November deadline hits.
National Landscape: A Growing List of Bans
Rhode Island and Pennsylvania are not alone. Several other states have already set hard deadlines for the removal of hemp-derived THC products from store shelves:
- Ohio: A ban on hemp-derived THC products sold outside of licensed cannabis retailers takes effect March 20.
Texas: The state is set to ban THCA flower starting March 31.
The Road to November
The U.S. hemp industry is currently in a state of flux. From farmers growing high-THCA hemp to retailers specializing in Delta-8, the entire supply chain is facing a November expiration date.
As federal enforcement strategies remain unclear, these state-level movements suggest that the transition from a “loophole” market to a strictly regulated (or banned) market will be swift and state-led. For businesses in the space, the message is clear: the window for intoxicating hemp products is closing.
