In a twist of events that befits the cursed news cycle, the end of the government shutdown is poised to have a significant negative impact on Americans’ ability to purchase THC-infused edibles, drinks, and more.
A provision of the legislation designed to conclude the government shutdown—43 days and counting, the longest in history—passed by Congress on Wednesday afternoon will make it illegal to purchase products containing more than .4 milligrams of THC. It would effectively close the 2018 Farm Bill’s so-called loophole, which makes the sale of hemp legal as long as it contains less than 0.3% delta-9 THC (naturally occurring THC in hemp and cannabis plants, which most reputable brands use in their products).
As it stands, the legislation stands to devastate the $38.5 billion industry, but before you stockpile your favorite infused gummies and infused drinks, here’s what you need to understand about the ban.
1. The legislation outlaws over 95% of products on the cannabis market
In its current version, the legislation would make over 95% of THC-infused products sold in the United States illegal for purchase.
Nathan Cozzolino, CEO of Rose Los Angeles, which makes infused chocolates and gummies, calls it “a clear attempt to kill the cannabis industry,” but says that the law actually impacts more than just hemp-derived THC products. “Even every product in our CBD-infused line has more than .4 milligrams of THC,” he says, “This law would literally make every SKU we sell illegal.”
2. The ban won’t go into effect until next year
Jake Bullock, cofounder of the sparkling THC- and CBD-infused beverage company CANN, believes the one-year implementation delay written into the law is designed to give the cannabis industry time to pass clear regulations that allow products like his to stay legal.
“I'd actually say ‘ban’ is a misnomer for what this legislation is—it’s really a one-year shot clock to finally get the rules we’ve always wanted,” he says. “From the beginning, our vision has been to sell CANN alongside alcohol wherever it’s sold, and today marks the start of making that vision a reality.”
Justin Tidwell, CEO of Nowadays, the zero-proof THC spirit, agrees that the law’s timing is key.
“[The delay] means businesses can keep operating under the current rules while policymakers, industry leaders, and stakeholders work together to craft thoughtful long-term regulations. It creates stability in the short term and space for real dialogue in the long term.”
3. Many founders believe the legislation is the “tough love” needed to legitimize the cannabis category
Cozzolino notes that the best-case scenario is that the law makes “gas station garbage” edibles illegal, and instead helps legitimize companies that are selling high-quality THC to adults who stand to benefit from it. Crucially, he also believes that it is “highly unlikely” that the law goes into effect without amendments to the THC cap.
“The purpose of this potential ban is to weed out bad actors in the category,” adds Bullock. “High-potency, synthetic products have no place in the market. The industry's inability to solve that problem is what led us to today.”
Tidwell says that this law marks the first time federal policymakers are deeply engaged in understanding hemp-derived beverages. He sees it as an opportunity to build a consistent regulatory framework that reflects how consumers actually use THC-infused products.
“Regulation like this gives Americans access to lower potency drinks, and keeps them away from minors,” says Bullock. “Alcohol has been doing this for nearly a century, and we should leverage its rules as a model for these adult beverages, to create smart, sensible rules that let this category thrive responsibly.”