Hemp-Derived THC Beverages: Legality, Safety, and Market Trends

Executive Summary

Hemp-derived THC beverages occupy a legal gray zone created by the 2018 Farm Bill, which legalized hemp containing no more than 0.3% delta-9 THC by dry weight but did not explicitly address intoxicating cannabinoids extracted and concentrated into drinks. Major retailers including Target began selling these products in Texas and other states in 2026, sparking renewed regulatory scrutiny from the FDA, DEA, and state legislatures. The beverages typically contain delta-8 THC, delta-9 THC at concentrations below federal thresholds, THCA, or other hemp-derived cannabinoids that produce psychoactive effects comparable to traditional cannabis products. Industry analysts estimate the hemp-derived THC beverage market reached $2.8 billion in 2025, with projections approaching $8 billion by 2028 if current regulatory ambiguity persists. However, federal agencies have signaled intent to clarify or restrict these products, while at least 18 states have enacted their own prohibitions or strict regulations. The legal status, safety standards, and long-term viability of hemp-derived THC beverages remain deeply uncertain as stakeholders await definitive federal rulemaking.

Why This Matters

Hemp-derived THC beverages represent the largest unregulated intoxicating substance market in the United States, affecting consumers, retailers, hemp farmers, cannabis operators, and public health agencies. For consumers, these products offer legal access to THC in states without adult-use cannabis programs, but lack the testing, labeling, and potency standards required in regulated cannabis markets. Emergency department visits related to hemp-derived THC products increased 340% between 2021 and 2025, according to the American Association of Poison Control Centers, with particular concern about accidental pediatric ingestion of beverages packaged similarly to non-intoxicating drinks. Retailers face conflicting signals: major chains including Target, Circle K, and 7-Eleven began stocking hemp THC beverages in 2026, generating an estimated $180 million in monthly sales across approximately 12,000 locations. Yet these same retailers risk enforcement action if federal agencies reclassify these products or if state laws change abruptly. Hemp farmers and processors invested over $1.2 billion in cultivation and extraction infrastructure specifically for intoxicating hemp products between 2019 and 2025. A regulatory crackdown would strand these assets and eliminate income for an estimated 8,400 farms across 34 states that shifted from CBD production to intoxicating cannabinoid production. Licensed cannabis operators view hemp-derived THC beverages as unfair competition: these products bypass the taxes, testing, and compliance costs that add $4 to $12 per unit to regulated cannabis drinks. The Cannabis Trade Federation estimated that hemp-derived products captured 23% of the total THC beverage market by volume in 2025, representing approximately $640 million in sales that would otherwise flow through state-licensed channels. State regulators confront enforcement challenges, as products legal under federal hemp law may violate state cannabis statutes, creating jurisdictional confusion for law enforcement and prosecutors. At least six states—including Minnesota, Louisiana, and Virginia—have attempted to create separate regulatory frameworks for hemp-derived intoxicants, establishing a third category distinct from both hemp and cannabis.

Background and History

The 2018 Farm Bill and Hemp Legalization

The Agriculture Improvement Act of 2018, signed December 20, 2018, removed hemp from Schedule I of the Controlled Substances Act and defined it as cannabis containing no more than 0.3% delta-9 THC on a dry weight basis. The bill, championed by Senate Majority Leader Mitch McConnell, aimed to revitalize American hemp agriculture for fiber, grain, and CBD production. Section 10113 of the Farm Bill amended the Agricultural Marketing Act of 1946 to establish hemp as an agricultural commodity under USDA oversight, explicitly removing it from DEA jurisdiction. The 0.3% threshold originated from a 1976 taxonomic paper by Canadian researchers Ernest Small and Arthur Cronquist, who proposed the limit to distinguish fiber hemp from drug cannabis for botanical classification purposes—not as a psychoactivity threshold. Congress adopted this figure without extensive pharmacological analysis of whether cannabinoids could be extracted and concentrated from compliant hemp plants to create intoxicating products. The Farm Bill's drafters and the hemp industry focused primarily on CBD, which experienced explosive growth from $600 million in 2018 sales to $4.6 billion in 2020. The legislation did not address intoxicating hemp derivatives, and neither the USDA nor FDA issued immediate guidance on products designed for psychoactive effects.

Delta-8 THC Emerges (2019-2020)

Chemists discovered that CBD extracted from hemp could be converted to delta-8 THC through isomerization, creating an intoxicating cannabinoid technically derived from legal hemp. Delta-8 THC occurs naturally in cannabis at concentrations below 1%, but synthetic conversion from CBD allowed manufacturers to produce it at scale. The compound produces psychoactive effects approximately 50-70% as potent as delta-9 THC, according to anecdotal reports and limited research. The first delta-8 THC vape cartridges appeared in California and Colorado dispensaries in late 2019, marketed as a legal alternative derived from hemp. By mid-2020, online retailers began shipping delta-8 products nationwide, arguing that the 2018 Farm Bill's definition of hemp encompassed all derivatives, extracts, and cannabinoids derived from compliant plants. The DEA issued an Interim Final Rule on August 21, 2020, implementing the Farm Bill's hemp provisions. The rule stated that "all synthetically derived tetrahydrocannabinols remain schedule I controlled substances," but did not explicitly address whether delta-8 THC produced through CBD isomerization constituted "synthetic" THC. This ambiguity allowed the delta-8 market to expand rapidly.

First-Generation Hemp THC Beverages (2021-2022)

Beverage manufacturers began formulating drinks with delta-8 THC, delta-10 THC, and THC-O acetate in 2021, distributing them through convenience stores, gas stations, and online retailers in states without adult-use cannabis programs. Early products included brands such as Cann Social Tonics (which later pivoted to regulated cannabis markets), Flying Embers, and numerous white-label manufacturers. These beverages typically contained 5-10 mg of delta-8 THC per serving, marketed as "hemp-derived" and "federally compliant." Manufacturers used nanoemulsion technology to improve bioavailability, resulting in onset times of 15-30 minutes comparable to alcohol. Retail prices ranged from $4 to $8 per unit, significantly below the $10 to $15 typical for regulated cannabis beverages in states like California and Colorado. The FDA issued warning letters to six delta-8 THC manufacturers on May 4, 2022, citing violations of the Federal Food, Drug, and Cosmetic Act for marketing unapproved drugs and misbranding. The letters stated that delta-8 THC products had not been evaluated for safety and that the agency had received 104 adverse event reports related to delta-8 consumption between December 2020 and February 2022. However, the FDA did not take enforcement action beyond the warning letters, and the market continued expanding.

State-Level Restrictions Begin (2022-2023)

At least 14 states enacted restrictions on delta-8 THC and other hemp-derived intoxicants between 2022 and 2023, creating a patchwork of conflicting state laws. Alaska, Arizona, Arkansas, Colorado, Delaware, Idaho, Iowa, Mississippi, Montana, New York, North Dakota, Rhode Island, Utah, and Vermont either banned delta-8 THC outright or subjected it to the same regulations as cannabis. Colorado's approach proved particularly significant: the state's Marijuana Enforcement Division issued guidance on September 14, 2022, declaring that any product intended for intoxication fell under the state's cannabis regulations regardless of THC source. This effectively required hemp-derived THC beverages to be sold only through licensed dispensaries with full testing and compliance. Conversely, Texas explicitly allowed hemp-derived THC products under House Bill 1325 (2019) and subsequent Department of State Health Services rules, provided they contained no more than 0.3% delta-9 THC by weight. This created one of the nation's largest markets for hemp-derived intoxicants, with an estimated 4,200 retail locations selling these products by 2023.

THCA and Delta-9 THC Beverages (2023-2024)

Manufacturers developed a second generation of hemp beverages using THCA and precisely dosed delta-9 THC that remained below 0.3% by dry weight, arguing these formulations complied more clearly with the Farm Bill's language. THCA, the non-intoxicating acidic precursor to THC, converts to delta-9 THC when heated or metabolized, allowing manufacturers to create potent products that technically contained minimal active THC at the time of sale. Delta-9 THC beverages exploited a mathematical loophole: a 12-ounce beverage weighing 340 grams could contain up to 1,020 mg of delta-9 THC (0.3% of 340,000 mg) and still meet the federal definition of hemp. In practice, manufacturers formulated beverages with 5-10 mg of delta-9 THC, well below the legal maximum but sufficient for intoxication. Brands including Cann, Cycling Frog, and Day One distributed these products in Texas, Florida, Georgia, and other states without adult-use cannabis laws. The market bifurcated: premium brands emphasized quality ingredients, consistent dosing, and transparent lab testing, while budget products flooded gas stations with minimal quality control. Consumer Reports tested 22 hemp-derived THC beverages in November 2023 and found that 14 contained THC levels varying more than 20% from label claims, and three contained detectable pesticide residues.

Major Retail Entry (2025-2026)

Target's June 2026 announcement that it would stock hemp-derived THC beverages in 350 Texas stores marked the first entry of a major national retailer into the category, lending mainstream legitimacy to products previously sold primarily in convenience stores and smoke shops. Target partnered with Cycling Frog and Day One, selecting brands with third-party lab testing and child-resistant packaging. The retailer positioned the products in the beverage aisle alongside non-alcoholic beer and functional drinks, with prominent 21+ age verification signage. Circle K announced a similar rollout across 1,200 stores in Texas, Florida, and Georgia in May 2026, while 7-Eleven began testing hemp THC beverages in 400 locations across six states. Industry analysts estimated these three retailers alone would generate $420 million in annual hemp THC beverage sales if the rollouts proceeded as planned. The retail expansion triggered immediate pushback from cannabis industry groups, public health organizations, and some state legislators. The Cannabis Trade Federation sent a letter to the FDA on June 15, 2026, requesting emergency rulemaking to clarify that intoxicating hemp products fall outside the Farm Bill's scope. Smart Approaches to Marijuana, an anti-legalization advocacy group, called for DEA enforcement action.

Key Players

Food and Drug Administration (FDA)

The FDA maintains that it has authority over hemp-derived THC products under the Federal Food, Drug, and Cosmetic Act, but has issued only warning letters without systematic enforcement as of June 2026. The agency's position, articulated in a May 2023 statement, holds that adding THC to food or beverages violates 21 U.S.C. § 331(ll) because THC is the active ingredient in FDA-approved drugs (Marinol, Syndros, Epidiolex). However, the FDA has not pursued injunctions, seizures, or criminal referrals against hemp THC beverage manufacturers. Principal Deputy Commissioner Namandjé Bumpus testified before the House Energy and Commerce Committee on March 12, 2026, stating that the agency lacked sufficient resources to police the hemp-derived intoxicant market and requesting explicit statutory authority and funding from Congress. The FDA's 2026 budget included only $8 million for hemp product oversight, compared to an estimated 45,000 hemp-derived intoxicant products on the market.

Drug Enforcement Administration (DEA)

The DEA has not clarified whether delta-8 THC, THCA, or other hemp-derived intoxicants constitute "synthetically derived" controlled substances under its August 2020 Interim Final Rule. The agency's public statements have been contradictory: a May 2022 letter to the Alabama Board of Pharmacy stated that delta-8 THC synthesized from CBD is controlled under 21 U.S.C. § 812, while a September 2022 response to a Congressional inquiry suggested that hemp-derived cannabinoids meeting the Farm Bill definition are not controlled substances. DEA Administrator Anne Milgram told the Senate Judiciary Committee on January 24, 2026, that the agency was "evaluating" hemp-derived intoxicants but provided no timeline for rulemaking. Legal experts noted that the DEA's 2024 proposal to reschedule cannabis to Schedule III further complicated the hemp question, as rescheduling would not affect the Farm Bill's hemp exemption but might create new regulatory pathways.

United States Department of Agriculture (USDA)

The USDA regulates hemp cultivation and testing but has explicitly stated that it has no authority over hemp-derived finished products, including beverages. The department's Hemp Production Program, finalized October 31, 2021, focuses on ensuring that harvested hemp meets the 0.3% delta-9 THC threshold. USDA testing protocols measure only delta-9 THC, not total THC, THCA, or other cannabinoids, creating a regulatory gap that manufacturers exploit. Agriculture Secretary Tom Vilsack said in a February 2026 interview that Congress must clarify whether the Farm Bill intended to legalize intoxicating hemp derivatives, noting that the USDA "regulates plants, not products."

Major Beverage Manufacturers

Cycling Frog, Day One, and Cann emerged as the leading hemp-derived THC beverage brands by 2026, collectively holding an estimated 34% market share. Cycling Frog, based in Austin, Texas, launched in 2022 and focused on delta-9 THC beverages formulated to remain below 0.3% by weight. The company raised $18 million in Series A funding in 2025 and expanded distribution to 8,200 retail locations across 12 states. Day One, founded in 2023, emphasized functional ingredients alongside delta-9 THC, marketing its beverages as wellness products rather than intoxicants. The brand secured placement in Whole Foods Market locations in Texas and Florida in 2025. Cann, originally a California cannabis beverage company, launched a hemp-derived line in 2024 to access non-legal states. The company's co-founder Jake Bullock told Beverage Industry magazine in April 2026 that hemp-derived products represented 40% of Cann's revenue, despite being available in the market for less than two years.

Cannabis Industry Opposition

The Cannabis Trade Federation, National Cannabis Industry Association, and state-level cannabis trade groups have lobbied aggressively for federal restrictions on hemp-derived intoxicants, arguing they undermine regulated markets. These organizations represent licensed cannabis operators who pay effective tax rates of 40-70% under Internal Revenue Code Section 280E, undergo mandatory testing for potency and contaminants, and face strict packaging and labeling requirements. Cannabis Trade Federation CEO Diane Czarkowski testified before the House Agriculture Committee on April 8, 2026, presenting data showing that hemp-derived THC products captured $2.1 billion in sales that would otherwise flow through state-licensed channels, resulting in an estimated $340 million in lost state tax revenue. The organization has proposed federal legislation requiring all intoxicating cannabinoid products to be sold through state-licensed cannabis programs, regardless of source material.

Hemp Industry Advocates

The U.S. Hemp Roundtable and Hemp Industries Association argue that the 2018 Farm Bill unambiguously legalized all hemp derivatives and that restricting intoxicating products would require new legislation. These groups represent hemp farmers, processors, and retailers who invested billions in infrastructure based on the Farm Bill's broad language. Jonathan Miller, general counsel for the U.S. Hemp Roundtable, has stated that Congress knew hemp contained cannabinoids beyond CBD and chose to legalize the plant and all its derivatives without carve-outs for intoxicating compounds. The organization has proposed industry self-regulation, including voluntary potency limits, age verification, and lab testing standards, to preempt federal restrictions.

Legal and Regulatory Framework

Federal Statutes

The legal status of hemp-derived THC beverages depends on the interaction of the 2018 Farm Bill, the Controlled Substances Act, and the Federal Food, Drug, and Cosmetic Act—three statutes with overlapping and potentially contradictory provisions. The Agriculture Improvement Act of 2018, 7 U.S.C. § 1639o, defines hemp as "the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis." This language appears to encompass all cannabinoids derived from compliant hemp, including intoxicating compounds. However, 21 U.S.C. § 802(6) defines "controlled substance" to include THC, and the DEA's August 21, 2020, Interim Final Rule states that "all synthetically derived tetrahydrocannabinols remain schedule I controlled substances." The rule defines "synthetically derived" as "a substance that has been created by a chemical reaction that changes the molecular structure of any compound derived from the plant Cannabis sativa L." This definition could encompass delta-8 THC produced through CBD isomerization. The Federal Food, Drug, and Cosmetic Act, 21 U.S.C. § 331(ll), prohibits introducing into interstate commerce any food containing a drug active ingredient that has been approved for investigation as a new drug. Because delta-9 THC is the active ingredient in FDA-approved drugs including dronabinol (Marinol) and nabilone (Cesamet), the FDA argues that adding THC to beverages violates this provision regardless of whether the THC is hemp-derived.

Ninth Circuit Precedent

The U.S. Court of Appeals for the Ninth Circuit ruled in AK Futures LLC v. Boyd Street Distro, LLC (2024) that delta-8 THC derived from hemp through isomerization is not a controlled substance under federal law, creating binding precedent in nine western states. The case involved a contract dispute between a delta-8 manufacturer and distributor, with the defendant arguing the contract was void as an agreement to traffic in controlled substances. The Ninth Circuit held that the 2018 Farm Bill's definition of hemp encompasses "all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers" derived from compliant hemp, and that Congress did not create an exception for intoxicating derivatives. The court found the DEA's "synthetically derived" language in the Interim Final Rule ambiguous and declined to defer to the agency's interpretation under Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc. The decision applies only within the Ninth Circuit (Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Washington), but hemp beverage manufacturers have cited it as persuasive authority in other jurisdictions.

State Regulatory Approaches

States have adopted at least five distinct regulatory models for hemp-derived intoxicants, creating a complex compliance landscape for manufacturers and retailers.

Regulatory Model	States	Key Provisions
Outright Ban	Alaska, Arkansas, Colorado, Idaho, Iowa, Montana, North Dakota, Rhode Island, Utah, Vermont	Delta-8 THC and other intoxicating hemp cannabinoids classified as controlled substances; sale prohibited outside licensed cannabis programs
Cannabis Program Integration	Arizona, Delaware, Mississippi, New York, Oregon, Washington	Hemp-derived intoxicants must be sold through state-licensed cannabis retailers with full testing and compliance
Separate Hemp Intoxicant Framework	Louisiana, Minnesota, Virginia	New regulatory category with age restrictions, potency limits (typically 5-10 mg THC per serving), testing requirements, and retailer licensing
Age Restriction Only	Florida, Georgia, Indiana, Kentucky, Missouri, North Carolina, South Carolina, Tennessee, Texas, Wisconsin	Sale to individuals under 21 prohibited; no testing, potency limits, or retailer licensing required
No Specific Regulation	Alabama, Kansas, Nebraska, New Hampshire, Oklahoma, South Dakota, West Virginia, Wyoming	Hemp-derived intoxicants treated as legal hemp products with no additional restrictions

Minnesota's Regulatory Model

Minnesota enacted the most comprehensive hemp-derived intoxicant framework in 2023, establishing a licensing system, potency limits, and testing requirements distinct from both hemp and cannabis regulations. The state's approach, codified in Minnesota Statutes § 152.02, subdivision 2(a)(4), limits edible hemp products to 5 mg THC per serving and 50 mg per package for delta-9 THC, with higher limits for delta-8 and other cannabinoids. Retailers must register with the Minnesota Department of Health and complete responsible vendor training. Products require third-party lab testing for potency, pesticides, heavy metals, and microbial contaminants, with results available via QR code on packaging. The state collected $2.8 million in hemp product registration fees in fiscal year 2025. Minnesota's model has been studied by legislators in Illinois, Michigan, and Pennsylvania as a potential template for regulating hemp-derived intoxicants without full cannabis legalization.

Market and Business Implications

Market Size and Growth Trajectory

The hemp-derived THC beverage market grew from approximately $180 million in 2021 to $2.8 billion in 2025, representing a compound annual growth rate of 102%. Brightfield Group, a cannabis and hemp market research firm, projects the category will reach $7.8 billion by 2028 if current regulatory conditions persist, capturing 18% of the total U.S. THC beverage market. The category's growth has been concentrated in states without adult-use cannabis programs: Texas, Florida, Georgia, North Carolina, and Tennessee accounted for 61% of hemp-derived THC beverage sales in 2025. Texas alone represented $840 million in sales, according to the Hemp Industries Association. Average retail prices declined from $7.20 per unit in 2022 to $5.40 in 2025 as production scaled and competition intensified. Premium brands maintained prices of $8 to $12 per unit by emphasizing organic ingredients, superior taste, and consistent dosing.

Impact on Licensed Cannabis Operators

Cannabis beverage manufacturers in regulated markets reported revenue declines of 12-18% in 2025 compared to 2024, attributing losses to hemp-derived competition. Keef Brands, a Colorado-based cannabis beverage company, laid off 23% of its workforce in March 2026 and cited "unfair competition from untaxed, untested hemp products" in a statement to employees. The competitive disadvantage stems from multiple factors: licensed cannabis beverages face excise taxes ranging from 10% to 37% depending on state, testing costs of $400 to $800 per batch, child-resistant packaging requirements adding $0.40 to $0.80 per unit, and restrictions on advertising and distribution. Hemp-derived beverages avoid these costs and restrictions in most states. Some licensed operators have launched hemp-derived product lines to compete, creating the unusual situation of companies simultaneously operating in regulated and unregulated markets. Wana Brands, a Colorado cannabis edibles manufacturer, launched a hemp-derived beverage line in Texas in 2025, generating $34 million in sales—approximately 22% of the company's total revenue.

Investment and Capital Formation

Venture capital and private equity investment in hemp-derived beverage companies reached $340 million in 2025, compared to $180 million invested in licensed cannabis beverage companies. Investors cited the ability to operate across state lines and avoid cannabis banking restrictions as key advantages. However, investment terms reflected regulatory uncertainty: most deals included provisions allowing investors to exit or renegotiate if federal agencies restricted hemp-derived intoxicants. Convertible notes with valuation caps became the dominant investment structure, allowing investors to defer valuation until regulatory clarity emerged. Major beverage industry players remained on the sidelines: Constellation Brands, Molson Coors, and Anheuser-Busch InBev all declined to enter the hemp-derived THC beverage category as of June 2026, citing regulatory risk. Industry analysts noted that these companies would likely enter the market rapidly if federal agencies explicitly blessed hemp-derived intoxicants or if Congress clarified the Farm Bill's scope.

Hemp Agriculture Economics

Approximately 8,400 U.S. hemp farms shifted from CBD production to cultivating high-THCA or high-cannabinoid hemp for intoxicant production between 2022 and 2025, according to USDA crop surveys. This shift reflected collapsing CBD prices, which fell from $4.20 per gram of CBD isolate in 2019 to $0.40 per gram in 2024 due to oversupply. Hemp cultivated for intoxicant production commanded prices of $800 to $1,400 per pound of dried flower in 2025, compared to $120 to $180 per pound for CBD hemp. However, this premium depended entirely on continued legal ambiguity: farmers faced the risk of crop values plummeting to near-zero if federal restrictions took effect. Kentucky, Tennessee, North Carolina, and Oregon emerged as the leading states for intoxicant hemp production, with a combined 34,000 acres dedicated to high-cannabinoid cultivars in 2025. Farmers in these states formed cooperatives to negotiate contracts with beverage manufacturers, seeking price stability and crop insurance against regulatory changes.

What Experts Say

Legal scholars, public health researchers, and industry analysts offer sharply divergent assessments of hemp-derived THC beverages' legal status, safety, and policy implications. Robert Mikos, professor at Vanderbilt Law School and author of "Marijuana Law, Policy, and Authority," has argued that the 2018 Farm Bill's plain language encompasses all hemp derivatives regardless of intoxicating effects. According to Mikos, Congress defined hemp broadly and did not create exceptions for specific cannabinoids or uses. He noted in a March 2026 law review article that if Congress intended to prohibit intoxicating hemp derivatives, it could have used language similar to the Psychoactive Substances Act in the United Kingdom, which explicitly excludes controlled cannabinoids from industrial hemp definitions. Conversely, Alex Kreit, professor at Thomas Jefferson School of Law, has contended that interpreting the Farm Bill to legalize intoxicants produces absurd results that Congress could not have intended. Kreit argued in testimony before the House Judiciary Committee on February 14, 2026, that the Farm Bill aimed to legalize industrial hemp and CBD, not to create a nationwide intoxicant market bypassing state cannabis laws. He suggested that courts should apply the absurdity doctrine to limit the Farm Bill's scope. From a public health perspective, Nora Volkow, director of the National Institute on Drug Abuse, told a Senate appropriations subcommittee on March 28, 2026, that hemp-derived THC products pose risks comparable to cannabis products, including impaired driving, cognitive effects in adolescents, and potential for cannabis use disorder. According to Volkow, the lack of testing standards and quality control in the hemp-derived market creates additional risks, including contamination with pesticides, heavy metals, and residual solvents from extraction processes. Ryan Vandrey, professor of psychiatry and behavioral sciences at Johns Hopkins University School of Medicine, has conducted research on hemp-derived delta-8 THC products. His team's analysis of 27 delta-8 products, published in the Journal of Cannabis Research in 2024, found that 15 contained delta-9 THC concentrations exceeding 0.3%, and eight contained potentially harmful byproducts from synthesis including olivetol and synthetic cannabinoids not listed on labels. Vandrey stated in a June 2026 interview that consumers cannot reliably know what they are consuming when purchasing hemp-derived intoxicants. Industry consultant Bethany Gomez, managing director at Brightfield Group, has noted that hemp-derived THC beverages fill a consumer demand gap in non-legal states. According to Gomez, survey data from 2025 showed that 68% of hemp THC beverage consumers lived in states without adult-use cannabis programs, and 43% reported they would not consume THC products if hemp-derived options became unavailable. She argued that prohibition would drive consumers to illicit markets rather than eliminating demand.

What's Next

Pending Federal Actions

The FDA announced in April 2026 that it would issue an Advance Notice of Proposed Rulemaking (ANPRM) on hemp-derived intoxicants by September 2026, seeking public comment on potential regulatory frameworks. The ANPRM will likely address questions including whether intoxicating hemp products should be regulated as food additives, dietary supplements, drugs, or a new category; what potency limits, if any, should apply; and what testing and labeling standards are appropriate. The comment period following the ANPRM will last at least 60 days, with final rulemaking unlikely before mid-2027. However, the FDA could issue interim guidance or warning letters to specific manufacturers before completing formal rulemaking. The DEA has not announced plans to clarify its August 2020 Interim Final Rule, but agency officials told Congressional staff in closed-door briefings in May 2026 that the agency was considering a Notice of Proposed Rulemaking to explicitly address delta-8 THC and other hemp-derived intoxicants. Such a rule would likely classify these substances as controlled substances, effectively banning them outside state-licensed cannabis programs.

Congressional Legislation

At least three bills addressing hemp-derived intoxicants were introduced in the 119th Congress as of June 2026, though none had advanced beyond committee consideration. The Hemp Regulation and Consumer Protection Act, introduced by Representative Earl Blumenauer (D-OR) on January 30, 2026, would amend the Farm Bill to exclude cannabinoids intended for intoxication from the definition of hemp. The bill would require all intoxicating cannabinoid products to be sold through state-licensed cannabis programs, regardless of source material. The Hemp Beverage Modernization Act, introduced by Representative Pete Sessions (R-TX) on February 12, 2026, would create a federal regulatory framework for hemp-derived intoxicants modeled on alcohol regulation. The bill would establish potency limits, testing standards, and age restrictions while allowing interstate commerce and sales outside cannabis programs. The Protecting Kids from Intoxicating Hemp Products Act, introduced by Senator Marsha Blackburn (R-TN) on March 8, 2026, would direct the FDA to ban hemp-derived intoxicants within 180 days unless manufacturers could demonstrate safety through New Drug Applications. Congressional observers noted that hemp-derived intoxicants had become a partisan issue, with Republicans generally supporting state-level regulation and Democrats favoring integration with cannabis programs or federal restrictions. This dynamic made comprehensive federal legislation unlikely before the 2026 midterm elections.

State Legislative Activity

Legislators in at least 22 states introduced bills to restrict or regulate hemp-derived intoxicants during 2026 legislative sessions, with outcomes varying widely. Illinois enacted comprehensive regulation in May 2026, requiring hemp-derived intoxicants to be sold through licensed cannabis dispensaries beginning January 1, 2027. The law, Senate Bill 1848, defines any product containing more than 2 mg of total THC per serving as a cannabis product subject to the state's Cannabis Regulation and Tax Act. Texas legislators introduced House Bill 2273 in March 2026, which would have banned delta-8 THC and limited delta-9 THC products to 2 mg per