U.S. Senate approves ban on THC products derived from hemp

The US Senate rekindles tensions within the American hemp industry by proposing a ban on hemp products containing THC.

This measure, included in the massive spending plan designed to put an end to the longest government shutdown in U.S. history, has raised fears of economic disaster among hemp growers, who say it could destroy an industry built up over nearly a decade.

The Republican Senator Rand Paul had attempted to remove this provision through an amendment, arguing that it would jeopardize farms and small businesses in the sector. But his initiative was rejected on November 10 by 76 votes against 24, thus maintaining the text that redefines legal hemp and prohibits a wide range of cannabinoids derived from hemp currently sold in stores and online across the country.

«My amendment wants to remove the provision to kill the hemp industry,» Rand Paul warned before the vote. «The bill, in its current form, overrides the regulatory frameworks of several states, nullifies the collective decisions of hemp consumers and destroys the livelihoods of the farmers who grow it.»

President Trump backs ban on THC in hemp

The White House has confirmed that the President Donald Trump «supports the current wording of the hemp bill», thus aligning itself with the Senate Minority Leader Mitch McConnell, who has long advocated filling what he describes as a gap in the market. in the 2018 Farm Bill. The latter legalized hemp at the federal level, but defined it solely in terms of its hemp oil content. delta-9 THC, allowing producers to create and sell intoxicating cannabinoids such as the delta-8 THC and the THCA under the guise of hemp legality.

«The companies have exploited a loophole,» said McConnell, adding that the new restrictions would «prevent children from having access to dangerous products while preserving the hemp industry for farmers.».

A new definition of hemp

The proposed text redefines hemp as the plant Cannabis sativa and derivatives containing total THC concentration not exceeding 0.3% on a dry weight basis, but with one crucial difference: the limit now applies to all forms of THC, including the delta-8, the delta-10 and other isomers, as well as to all cannabinoids with similar effects on humans or animals.

Legal hemp-based products would also be subject to an maximum limit of 0.4 milligrams of total THC per container, a threshold that would disqualify most beverages derived from hemp, and edibles and electronic cigarettes currently on the market.

In addition, the bill prohibits synthetic cannabinoids or compounds «which cannot be produced naturally by the hemp plant», thus prohibiting substances such as HHC and the THC-P, which have gained in popularity on unregulated markets.

Within 90 days of the law's promulgation, the FDA and other federal agencies would be required to publish a list of all cannabinoids naturally present in hemp and those having psychotropic effects, This will pave the way for stricter enforcement and the withdrawal of certain products.

An industry on the brink of collapse

For the hemp industry, the consequences could be devastating. L’U.S. Hemp Roundtable, one of the industry's leading advocacy organizations, believes that the ban could destroy 95% the market for cannabinoids derived from hemp, jeopardizing 300,000 jobs and costing governments more than 1.5 billion in annual tax revenues.

«Our industry is being used as a pawn as leaders work to reopen government,» said Jonathan Miller, the group's general counsel. «Recriminalizing hemp will force American farms and businesses to close and disrupt the well-being of countless Americans who depend on hemp.»

The proposed ban comes at a difficult time for U.S. farmers, already facing declining crop prices and market uncertainty. For states like Kentucky, once a leader in hemp cultivation, the new rules could dismantle what remains of a fragile agricultural recovery.

Democratic Senator from Oregon, Jeff Merkley, echoed these concerns on the Senate floor, warning that the change would «wipe out an industry that has taken us over a decade to create».

Growing divisions between hemp and cannabis interests

This dispute highlights a growing divide between hemp and regulated cannabis companies. While hemp companies see this new formulation as a death sentence, many licensed cannabis operators support this crackdown, arguing that it will eliminate unfair competition from hemp-based intoxicants who circumvent state regulations on cannabis.

«The regulated cannabis industry can now return to cannabis normalization without bad actors and criminals taking advantage of the Farm Bill loophole,» said Trent Woloveck, Chief Strategy Officer at Jushi Holdings.

A coalition of alcohol industry trade groups, whose’American Distilled Spirits Alliance, the Beer Institute and the Wine Institute, also urged senators to support the ban. In a joint letter, they warned that Senator Paul's opposition «could threaten the delicately balanced agreement to reopen the federal government,» while insisting that «alcoholic beverage manufacturers...stand ready to work with Congress to pass meaningful regulations that protect consumers.».

Even large consumer companies such as Coca-Cola, Kraft Heinz and Nestlé, The U.S. Food and Drug Administration (FDA) has reportedly lobbied Congress to restrict THC-based products derived from hemp, citing public safety and compliance concerns.

Finito?

The Finance Bill still has to be approved by the French Parliament. House of Representatives before being submitted to President Trump. If approved, it would not only reopen the government, but also reshaping the american hemp market for years to come.

Senator Rand Paul has pledged to continue fighting for hemp growers, proposing a separate measure - the Hemp Economic Mobilization Plan (HEMP) Act - that would triple the allowable THC limit in hemp and modernize regulations rather than impose new bans.

The Senate's current position, however, marks a significant political U-turn on the optimism of the Farm Bill of 2018 and proud support from President Donald Trump at the time.