North Carolina governor calls for «safe and legal» cannabis market»

The North Carolina could be closer to the legalization of recreational cannabis, after a governor-appointed commission issued a new interim report urging lawmakers to replace the ban with a comprehensive regulatory framework for THC-based products.

This report, published by North Carolina Cannabis Advisory Council, follows months of meetings with the participation of legislators, The council is made up of representatives of the state, law enforcement, agriculture, health and Native American tribes. The council was created last year by Democratic governor Josh Stein, which has repeatedly argued that the state's current approach fails to protect consumers and public safety.

In a press release responding to the report, Stein reaffirmed his support for legalization, framing the issue as one of regulation rather than ideology.

«Last year, I tasked this group with developing a comprehensive solution to the illegal sale of cannabis, based on public health and safety, with a particular emphasis on protecting young people,» said Stein. «This report provides guidance to the General Assembly and makes clear that a well-regulated market, with both oversight and enforcement powers, is a safer market for our state.»

A «dangerous policy vacuum» between prohibition and regulation

The council argues that the state is currently stuck in what it describes as «regulatory no man's land». While cannabis remains illegal in North Carolina, some cannabinoids derived from hemp psychoactives are widely available in retail stores, vape stores, convenience stores and online vendors.

According to the report, «the lack of regulation of the psychoactive cannabis market in North Carolina raises many concerns,» not least because products containing psychoactive compounds are sold without consistent rules on testing, labeling, packaging or age verification.

«The psychoactive cannabis market in North Carolina is currently in a dangerous policy vacuum that is neither true prohibition nor meaningful regulation,» the council warned.

The advisory group also pointed out that prohibition deprives the state of basic controls such as licensing, zoning restrictions, purchasing limits or supply chain monitoring. In its view, this vacuum increases risks for consumers, while depriving the state of tax revenues that could fund prevention programs and law enforcement.

The report describes North Carolina as being at a «pivotal moment», noting that it remains one of some 10 U.S. states where access to cannabis for medical purposes or recreational use is not legal.

At the same time, the illegal market remains strong. The council estimates that residents spent around 3 billion dollars in illicit cannabis by 2022, making the state one of the country's biggest underground markets.

A push for «molecule-based» THC regulation»

The report calls for a single regulatory approach based on the THC, rather than separate rules for hemp and cannabis. The council argues that legislators should focus on the psychoactive compound itself.

The report recommends «molecule-based regulation focused on THC itself», asserting that «the plant source is irrelevant and should not give rise to different treatment when the psychoactive compound is the same».

This approach would probably have major implications for the booming hemp market, which has become a legal workaround in many states where prohibition is in force.

Why the expert panel rejects an exclusively medical approach

Unlike many states that legalized medical cannabis first, the board believes North Carolina should go straight to a adult-use cannabis market, with built-in protection for medical consumers.

The panel «does not see a medical-only program as an effective intermediate step or compromise solution», warning that this could increase demand while leaving much of the market in illegal channels.

Instead, the report calls for a comprehensive adult system with strong safeguards, including testing requirements, product warnings and recall powers.

Stein echoed this urgency, calling the state's current system chaotic. «Our state's unregulated cannabis market is a Wild West today and is crying out for order,» he said. «Let's get it right. Let's protect our children and create a safe, legal and well-regulated market for adults.»

Legislators must now take a decision

The board can only make recommendations, leaving the final decision to the’North Carolina General Meeting. The report states that the question is no longer whether psychoactive cannabinoid products will exist in the state, but whether legislators will regulate them.

A final report is expected by the end of 2026, with new subcommittees now focusing on law enforcement, criminal justice reform and federal compliance. In the meantime, the Eastern Band of Cherokee Indians has already opened the state's first legal adult dispensary on tribal land.