Hemp-THC Regulation: What’s Changing at the Federal Level?

A quiet but impactful shift of policy is going on in Washington, and it is changing the way the Federal Government looks at hemp and the emerging market of hemp-derived intoxicating products. For years, the 2018 Farm Bill unintentionally opened the door for a new category of psychoactive gummies, vapes, and drinks derived from hemp-extracted cannabinoids. These products grew quickly, appearing in gas stations, vape shops, and online stores with minimal regulation.

But the political winds have changed. Members of Congress, federal agencies, and regulatory committees are moving to narrow what qualifies as legal hemp — arguing that the original law created a loophole large enough for intoxicating substances to pass through unchecked. This change is now giving rise to numerous new definitions, testing standards, and possible limits on products, which could significantly alter the hemp economy. 

What Has Changed — In Simple Terms

The heart of the issue lies in how hemp was previously defined legally. The Farm Bill of 2018 defined hemp to be any cannabis plant or product that contains no more than 0.3% delta-9 THC by dry weight. The restriction on the compound delta-9 THC, which is the traditional intoxicating component, left the scope open for other hemp-derived molecules to enter the market. Due to the absence of legal restrictions on delta-8, delta-10, THCA, and other THC analogs, businesses began making and selling them legally.

Lawmakers now want to close that gap. Many committee recommendations and draft bills have been made to expand the definition of controlled cannabinoids to include any intoxicating compound, such as delta-8 or a synthetic derivative, which would no longer be “hemp” for federal purposes.

Some proposals go even further by carving out entire categories of psychoactive hemp-derived products, which would dramatically change what companies are allowed to produce. For a broader overview of how federal rules are evolving, see Farm Bill 2025: Hemp & CBD Industry Impact Guide.

Practical Regulatory Changes Now in Motion

Three clear policy trends are already visible, even as the debate continues.

1. Congressional Hemp Rules

The committees’ draft Farm Bill sections, committee recommendations, and appropriations riders all point in the same direction: don’t allow intoxicating substances to be sold just because they come from hemp. Some members of Congress argue that the original definition relied too heavily on a single molecule — delta-9 THC — and failed to consider the rapid scientific innovation that followed.

Hemp-derived intoxicants could face limits or bans under a new language being studied, whether through milligram caps, expanded THC calculations, or clearer statutory definitions of what is “intoxicating.”

2. Federal Testing Rules

At the same time, the national authorities, as well as most of the USDA, have been changing their enforcement stance. New testing rules call for tighter verification of THC levels and often require a DEA-registered lab to conduct testing.

A major point of tension is how THC should be measured.

• By dry weight (old system).

• Through complete THC (including THCA, which changes when heated)

• Or by total milligrams per product.

The method selected will determine if a product remains legal or falls outside of hemp.

3. Ban & Restrictions

Some legislators want the ban on intoxicating hemp-derived products from retail entirely. Their proposals limit the total amount of THC in a product, strip protections for synthesized compounds, and implement stringent definitions to prevent products that cause a high from being marketed as “hemp.” 

If these measures pass, many current edibles, beverages, and vape products would need reformulation, new labels, or removal from shelves.

Why Lawmakers Are Acting Now

These federal changes result from two interconnected issues.

1. Public Health and Youth Safety

Many critics say intoxicating hemp-derived products have been sold too easily and in colorful packaging resembling candy or snacks. Because there are no consistent age restrictions, labeling standards, or potency rules, regulators are warning that children and teenagers could be exposed to products that resemble regulated cannabis edibles.

2. Regulatory Gaps Created by the 2018 Farm Bill

Some senators and enforcement officials say that restricting to “delta-9 only” has unintentionally opened up a pathway for these psychoactive substances to enter commerce outside state cannabis systems. Hemp-derived edibles and smoking products are not available in licensed cannabis markets, so they tend to avoid the safety rules, taxes, and testing applying to state marijuana programs.

These concerns have generated rare bipartisan agreement — something uncommon in today’s political climate. For a related discussion on industry impacts, see New Hemp Law Sparks Job Loss Concerns.

Winners and Losers in This Shift

These regulatory changes have significant economic implications.

Small Hemp Farmers and CBD Companies Face the Most Risk

Businesses built around hemp-derived cannabinoids may face restrictions or have their product lines eliminated. Gummies, drinks, and the vapes that use delta-8, THCA, and other similar derivatives will now not qualify for hemp products as per a new federal definition.

Numerous small manufacturers have warned that sudden regulatory changes could disrupt supply chains, reduce revenues, and force them out of the market.

Licensed Cannabis Businesses May Benefit

If intoxicating hemp products are limited, consumers looking for intoxication will likely migrate to state-legal cannabis dispensaries. Those dispensaries already operate with strict testing and labeling requirements — meaning tighter federal limits on hemp-derived intoxicants could strengthen their competitive edge.

Public-Health Advocates See a Win

Experts agree that limiting unregulated intoxicating products would cut down on accidental ingestion, misuse, and youth access.

Technical Issues That Will Determine the Final Outcome

Two unanswered questions are going to shape our industry in a meaningful manner.

1. How Should THC Be Calculated?

The weight of the product when dry rarely points to its strength. Calculating how much total THC is in a product or putting caps on milligrams could help consumers know more. But it could make many current formulations illegal.

2. How Will Federal Law Treat Synthesized Cannabinoids?

Some compounds exist in hemp in small amounts, while others are created by chemically altering CBD.  Some lawmakers want to ban synthesized cannabinoids, while others want them separately regulated.

The term "synthetic" will play a vital role in enforcement.

What Businesses and Consumers Should Do Now?

Businesses should begin preparing to adapt, even if the rules have not yet been approved.

• Review Product Formulations

Knowing more about delta-9, THCA, and total THC will get businesses ready for any compliance requirements.

• Monitor State-Level Policy

States are moving at different speeds. Some are setting limits on age and packaging, while others are banning intoxicating hemp products entirely. These state rules will not be replaced but rather complemented by federal changes.

• Prepare for Reformulation and New Costs

Even products that won’t get you high may need to update their labels, change testing documents, or adjust their packaging. Having a plan in place will protect businesses from unannounced disruption. 

The Road Ahead

Federal authorities are attempting to reconcile two conflicting objectives.

• Keep people, especially youths, safe from intoxicants.

• Preserve a legitimate agricultural and wellness market built around hemp.

The goal is to develop a policy that addresses real safety concerns. But, without regulating an industry that had grown with the help of the Farm Bill of 2018.

The regulations for hemp-derived products are expected to be decided in the months to come, as Congress debates new definitions while agencies fine-tune testing rules. Agribusinesses, producers, and consumers must be ready to transition, as the industry needs to adapt over time in response to changing federal standards.  

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