Hemp THC Drinks Legality: Federal Law, State Rules & Industry Outlook

Executive Summary

Hemp-derived THC beverages occupy a contested legal gray zone created by the 2018 Farm Bill, with the National Restaurant Association now lobbying Congress to preserve their legality as the DEA and FDA weigh regulatory action. These drinks—marketed as cannabis alternatives to alcohol—contain delta-8 THC, delta-9 THC at concentrations below 0.3% by dry weight, or other hemp-derived cannabinoids. The restaurant industry's June 2026 intervention marks a significant shift in the political landscape, as hospitality operators see hemp THC beverages as a revenue opportunity amid declining alcohol sales among younger consumers. The legal framework remains unstable: while the 2018 Farm Bill (7 U.S.C. § 1639o) legalized hemp and its derivatives, federal agencies dispute whether intoxicating products fall within that authorization. State responses vary wildly, with at least 17 states banning or restricting hemp THC products while others embrace them as compliant alternatives to regulated cannabis markets. The outcome will determine whether a multi-billion-dollar beverage category survives or collapses, affecting thousands of restaurants, retailers, manufacturers, and consumers who have adopted these products since 2019.

Why This Matters

The hemp THC beverage debate affects $2.8 billion in annual sales, thousands of hospitality businesses, millions of consumers, and the structural integrity of state-regulated cannabis markets. The National Restaurant Association represents more than 500,000 restaurant locations and 15.5 million employees across the United States. Its June 2026 letter to congressional leadership argued that hemp THC drinks provide a "harm reduction alternative" to alcohol and generate significant revenue for establishments that cannot obtain cannabis licenses. According to industry data from the Hemp Beverage Alliance, hemp THC drink sales reached $2.8 billion in 2025, up from $800 million in 2023. Major beverage distributors including Reyes Holdings and Southern Glazer's Wine and Spirits now carry hemp THC products alongside traditional alcohol. The stakeholder map extends far beyond restaurants. Cannabis multistate operators (MSOs) including Curaleaf, Trulieve, and Green Thumb Industries have argued that unregulated hemp THC products undercut their compliance costs and tax burdens under 280E. State regulators face enforcement dilemmas: products legal under federal hemp law may violate state cannabis control statutes. Public health advocates including the American Academy of Pediatrics have raised concerns about youth access, as hemp THC drinks appear on convenience store shelves without age verification systems comparable to state-licensed dispensaries. Consumer impact is direct and widespread. An estimated 12 million Americans purchased hemp THC beverages in 2025, according to survey data from New Frontier Data. These consumers—often in states without legal recreational cannabis—rely on hemp products for relaxation, sleep support, and social use. A regulatory crackdown would eliminate their legal access overnight, pushing demand toward illicit markets or leaving medical patients without alternatives.

Background and History

The hemp THC beverage market emerged from an unintended consequence of the 2018 Farm Bill, which legalized hemp without anticipating the development of intoxicating derivative products.

The 2018 Farm Bill and Hemp Legalization

On December 20, 2018, President Donald Trump signed the Agriculture Improvement Act of 2018 into law. Section 10113 amended the Controlled Substances Act to exclude "hemp" from the definition of marijuana, defining 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" (7 U.S.C. § 1639o). Senator Mitch McConnell championed the provision to support Kentucky hemp farmers, envisioning a market for textiles, CBD wellness products, and industrial applications. The law's language—"all derivatives, extracts, cannabinoids"—created a broad authorization that entrepreneurs quickly exploited. Within months, manufacturers began extracting CBD from hemp and converting it through isomerization into delta-8 THC, a psychoactive cannabinoid that occurs naturally in cannabis at trace levels but can be synthesized from CBD through chemical processes. The 0.3% delta-9 THC threshold applied to the source plant material, not the final product, creating a loophole for concentrated extracts.

The Delta-8 THC Explosion (2019-2021)

Delta-8 THC products flooded gas stations, smoke shops, and online retailers starting in mid-2019. By 2021, the delta-8 market reached an estimated $2 billion annually, according to data from Brightfield Group. Products included vape cartridges, gummies, tinctures—and increasingly, beverages. Manufacturers marketed delta-8 as "legal THC" or "diet weed," appealing to consumers in prohibition states and those seeking milder psychoactive effects than delta-9 THC. The DEA issued an Interim Final Rule on August 21, 2020, stating that "all synthetically derived tetrahydrocannabinols remain schedule I controlled substances" (85 Fed. Reg. 51639). The agency argued that delta-8 THC produced through chemical conversion of CBD qualified as synthetic. Industry groups including the U.S. Hemp Roundtable contested this interpretation, arguing that isomerization of a legal hemp derivative does not create a synthetic controlled substance. The legal question remained unresolved in federal court as of June 2026.

State Crackdowns and Market Fragmentation (2021-2023)

States began restricting hemp THC products through emergency rules and legislation. Colorado banned delta-8 THC in June 2021, with regulators arguing it competed unfairly with the state's regulated cannabis market. Alaska, Arkansas, Delaware, Kentucky, Montana, New York, Rhode Island, Utah, Vermont, and Washington followed with outright bans or restrictions limiting THC content in hemp products. Other states took regulatory approaches. California's Assembly Bill 45 (2023) established testing and labeling requirements for hemp THC products, capping serving sizes at 5 mg delta-9 THC and requiring child-resistant packaging. Minnesota's 2022 law legalized hemp-derived edibles and beverages containing up to 5 mg THC per serving and 50 mg per package, creating the nation's first explicit regulatory framework for intoxicating hemp products.

The Beverage Category Emerges (2022-2025)

Hemp THC beverages became the fastest-growing segment of the hemp market starting in 2022. Companies including Cann, Keef Brands, Recess, and Cycling Frog launched products containing 2-10 mg of delta-9 THC derived from hemp, marketed as cannabis alternatives to alcohol. The beverages used nanoemulsion technology to create faster onset times (15-30 minutes) compared to traditional edibles, mimicking the experiential curve of alcoholic drinks. Major beverage companies entered the space. Molson Coors partnered with Truss Beverage Co. to develop hemp THC drinks. Pabst Blue Ribbon launched a hemp-infused seltzer line in 2024. Constellation Brands, which holds a $4 billion stake in Canadian cannabis producer Canopy Growth, explored U.S. hemp beverage opportunities. The restaurant industry took notice. Establishments in states like Minnesota, California, and Illinois began offering hemp THC beverages on menus, often in dedicated "cannabis beverage" sections. Bars and restaurants without cannabis licenses could legally serve these products, creating a new revenue stream as alcohol consumption declined among millennials and Gen Z consumers.

Federal Regulatory Pressure Mounts (2024-2026)

The FDA issued warning letters to hemp THC beverage manufacturers in March 2024, citing violations of the Federal Food, Drug, and Cosmetic Act. The agency argued that adding THC to food and beverages violated 21 U.S.C. § 331(ll), which prohibits introducing into interstate commerce any food containing a drug that has been the subject of substantial clinical investigations (referring to Epidiolex, the FDA-approved CBD drug). Manufacturers responded that the provision applied only to CBD, not delta-9 THC or other cannabinoids. Congressional pressure intensified in 2025. Representative Mary Miller (R-IL) introduced the Hemp Regulation Act, which would have explicitly banned intoxicating hemp products and required all THC products to go through state-regulated cannabis channels. The bill stalled in committee but signaled growing concern among lawmakers representing states with regulated cannabis markets. The DEA announced in January 2026 that it was considering a Notice of Proposed Rulemaking to clarify the controlled substance status of hemp-derived cannabinoids. Industry groups braced for a potential ban, while the U.S. Hemp Roundtable mobilized lobbying efforts to preserve the 2018 Farm Bill framework.

Key Players

National Restaurant Association

The National Restaurant Association, representing more than 500,000 food service establishments, submitted a letter to Senate Majority Leader Chuck Schumer and House Speaker Mike Johnson on June 15, 2026, urging Congress to preserve hemp THC beverage legality. The trade group argued that these products provide "a safer alternative to alcohol" and generate revenue for restaurants struggling with labor costs and inflation. The association's intervention marked the first time a major non-cannabis industry group publicly defended intoxicating hemp products, lending mainstream credibility to the category.

U.S. Hemp Roundtable

The U.S. Hemp Roundtable, a coalition of hemp farmers, processors, and manufacturers, has consistently defended the 2018 Farm Bill framework. The group argues that Congress explicitly legalized "all derivatives" of hemp and that regulatory agencies lack authority to rewrite statutory language. Executive Director Jonathan Miller has testified before Congress multiple times, emphasizing the economic importance of hemp to rural communities and the need for regulatory clarity rather than prohibition.

Drug Enforcement Administration

The DEA maintains that synthetically derived THC remains a Schedule I controlled substance under 21 U.S.C. § 812, regardless of the source material. The agency's 2020 Interim Final Rule stated this position, though it has not pursued widespread enforcement against hemp THC manufacturers. The DEA faces political pressure from both sides: cannabis industry advocates want stricter hemp regulation, while hemp industry groups and now restaurant operators oppose restrictions.

Food and Drug Administration

The FDA has issued warning letters to hemp THC manufacturers but has not taken enforcement action against retailers or restaurants. The agency's position centers on food safety and the prohibition on adding drug ingredients to food products. FDA Commissioner Robert Califf stated in a May 2026 congressional hearing that the agency lacks resources for comprehensive hemp product enforcement and has called on Congress to provide clear statutory authority.

Cannabis Multistate Operators

MSOs including Curaleaf, Trulieve, Green Thumb Industries, and Cresco Labs have lobbied for stricter hemp regulation, arguing that unregulated hemp THC products create unfair competition. These companies pay effective tax rates exceeding 70% due to Internal Revenue Code Section 280E, which prohibits cannabis businesses from deducting ordinary business expenses. They also bear compliance costs for testing, packaging, and regulatory fees that hemp manufacturers avoid. The Cannabis Trade Federation has called for all intoxicating THC products to be channeled through state-regulated systems.

Hemp Beverage Alliance

The Hemp Beverage Alliance, formed in 2024, represents manufacturers including Cann, Keef Brands, and Recess. The group has advocated for federal regulatory standards rather than prohibition, proposing age restrictions, serving size limits, and labeling requirements modeled on alcohol regulation. The alliance commissioned economic studies showing that hemp beverages create jobs and tax revenue while providing harm reduction benefits compared to alcohol.

State Regulators

State cannabis control boards face enforcement dilemmas. California's Department of Cannabis Control has struggled to address hemp THC products that undercut licensed operators. Minnesota's Office of Cannabis Management embraced regulation, creating a legal framework that brought hemp products under state oversight. New York banned most intoxicating hemp products in 2023, directing consumers toward the state's licensed cannabis market.

Legal and Regulatory Framework

The legal status of hemp THC beverages depends on conflicting interpretations of the 2018 Farm Bill, the Controlled Substances Act, and the Federal Food, Drug, and Cosmetic Act, with no definitive judicial resolution as of June 2026.

The 2018 Farm Bill (7 U.S.C. § 1639o)

The Agriculture Improvement Act of 2018 removed hemp from Schedule I of the Controlled Substances Act, defining it as cannabis with no more than 0.3% delta-9 THC on a dry weight basis. Critically, the definition includes "all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers" of hemp. Proponents of hemp THC beverages argue this language authorizes any cannabinoid derived from compliant hemp plants, including concentrated extracts that exceed 0.3% THC by weight in the final product, as long as the source material met the threshold. The 0.3% standard applies to the hemp plant at harvest, not to processed derivatives. A hemp flower testing at 0.29% delta-9 THC can be extracted to create a concentrate containing 90% THC, and that concentrate theoretically remains a legal hemp derivative. This interpretation has enabled the hemp THC beverage market.

The Controlled Substances Act (21 U.S.C. § 812)

The DEA's 2020 Interim Final Rule asserted that "synthetically derived tetrahydrocannabinols" remain Schedule I controlled substances. The agency defined synthetic cannabinoids as those "that do not occur naturally in the cannabis plant" or are produced through chemical synthesis. Delta-8 THC occurs naturally in cannabis at concentrations below 0.1%, but commercial delta-8 is produced by converting CBD through acid-catalyzed isomerization. The DEA argues this chemical conversion creates a synthetic controlled substance. Hemp industry attorneys counter that isomerization rearranges existing molecules rather than creating new ones, and that the 2018 Farm Bill's "all derivatives" language encompasses chemically processed cannabinoids. No federal court has definitively resolved this question, though the Ninth Circuit's 2022 decision in AK Futures LLC v. Boyd Street Distro LLC suggested that delta-8 THC derived from legal hemp does not violate the Controlled Substances Act.

The Federal Food, Drug, and Cosmetic Act (21 U.S.C. § 331)

The FDA's position rests on 21 U.S.C. § 331(ll), which prohibits introducing into interstate commerce any food containing a drug that has been authorized for investigation as a new drug or approved as a new drug. The agency points to Epidiolex, an FDA-approved CBD drug, as triggering this prohibition for CBD-containing foods. The FDA has extended this reasoning to THC, arguing that substantial clinical investigations of THC preclude its use in food and beverages. Industry groups dispute this interpretation, noting that the prohibition applies to specific drug substances under investigation, not entire classes of cannabinoids. They argue that delta-9 THC derived from hemp differs from the synthetic THC (dronabinol) approved as Marinol, and that the FDA has not conducted substantial clinical investigations of hemp-derived delta-9 THC specifically.

State Law Variations

State laws create a patchwork of legality. States with hemp THC bans or severe restrictions include Alaska, Arkansas, Colorado, Delaware, Idaho, Iowa, Montana, North Dakota, Oregon, Rhode Island, South Dakota, Utah, and Vermont. These states either explicitly prohibit intoxicating hemp products or define "hemp" to exclude products intended for intoxication. States with regulatory frameworks include California (AB 45 testing and labeling requirements), Minnesota (5 mg serving limit, 50 mg package limit), and Illinois (hemp products allowed but subject to cannabis tax). States with ambiguous status include Florida, Texas, Georgia, and Tennessee, where hemp THC products are widely sold but lack explicit regulatory authorization. The state-by-state variation creates compliance challenges for national beverage distributors and restaurant chains, which must navigate conflicting legal regimes across their footprints.

State-by-State Breakdown

Hemp THC beverage legality varies dramatically by state, with regulatory approaches ranging from explicit authorization to criminal prohibition.

California

California's Assembly Bill 45, effective January 1, 2024, established the nation's most comprehensive hemp THC regulatory framework. The law caps hemp-derived delta-9 THC at 5 mg per serving and 50 mg per package for edibles and beverages. Products must undergo third-party testing for potency, pesticides, and heavy metals. Manufacturers must register with the California Department of Public Health and comply with child-resistant packaging requirements. The law created a legal pathway for hemp THC beverages in restaurants and retail stores, though the California Department of Cannabis Control has raised concerns about market cannibalization of licensed cannabis products.

Minnesota

Minnesota became the first state to explicitly legalize intoxicating hemp edibles and beverages through legislation signed in July 2022. The law allows hemp products containing up to 5 mg THC per serving and 50 mg per package, with no distinction between delta-8, delta-9, or other THC isomers. Products must be sold by retailers registered with the state and cannot be marketed to children. The law created a de facto adult-use cannabis market through hemp regulation, spurring restaurants and bars to add THC beverages to menus. Minnesota's Office of Cannabis Management now oversees both hemp and marijuana products under a unified regulatory structure following the 2023 legalization of recreational cannabis.

Colorado

Colorado banned delta-8 THC and other intoxicating hemp cannabinoids in June 2021, with the Department of Revenue's Marijuana Enforcement Division ruling that such products violate state cannabis laws. The state defines marijuana to include "all parts of the plant Cannabis sativa L." regardless of THC concentration, effectively nullifying the federal hemp exemption within Colorado. Hemp THC beverages are illegal for sale in Colorado, with enforcement actions targeting retailers. The ban protects Colorado's regulated cannabis market, which generated $423 million in tax revenue in 2025.

New York

New York banned the sale of intoxicating hemp products in September 2023, with the Office of Cannabis Management issuing emergency regulations prohibiting cannabinoid products intended for adult use outside the state's licensed cannabis market. The regulations defined "adult-use cannabinoid product" to include any hemp-derived product "commonly used for euphoric purposes," effectively banning hemp THC beverages. Retailers faced a December 2023 deadline to remove products from shelves. The ban aimed to channel consumers toward New York's licensed dispensaries, which began opening in late 2022.

Texas

Texas occupies a legal gray zone. The state legalized hemp through House Bill 1325 in 2019, adopting the federal 0.3% delta-9 THC definition. The law does not explicitly address intoxicating hemp derivatives, creating ambiguity. The Texas Department of State Health Services has issued guidance stating that delta-8 THC is illegal as a Schedule I controlled substance, but enforcement has been inconsistent. Hemp THC beverages are widely available in Texas convenience stores and smoke shops, with manufacturers arguing that delta-9 THC products derived from hemp remain legal under the 2019 statute. The Texas legislature considered clarifying legislation in 2025 but did not pass a bill.

Florida

Florida's hemp law (Senate Bill 1020, 2019) legalized hemp and hemp extracts without explicitly addressing intoxicating products. The Florida Department of Agriculture and Consumer Services regulates hemp cultivation but has not issued comprehensive rules for hemp-derived cannabinoid products. Hemp THC beverages are sold widely in Florida, particularly in Miami, Orlando, and Tampa markets. The state's ambiguous regulatory status has made Florida one of the largest hemp THC beverage markets, with estimated 2025 sales of $340 million according to BDSA analytics.

Illinois

Illinois allows hemp THC products but subjects them to the state's cannabis tax structure. The Department of Revenue ruled in 2023 that hemp-derived THC beverages sold for adult use must pay the same excise taxes as cannabis products from licensed dispensaries—10% for products under 35% THC. This interpretation creates a regulatory middle ground: hemp THC beverages are legal but taxed, reducing the price advantage over licensed cannabis products. Restaurants in Chicago and other Illinois cities have added hemp THC beverages to menus, with sales subject to the state's cannabis tax.

Oregon

Oregon banned intoxicating hemp products in 2021, with the Oregon Liquor and Cannabis Commission ruling that all THC products must be sold through licensed dispensaries. The state's hemp program, administered by the Oregon Department of Agriculture, prohibits processing hemp into intoxicating cannabinoid products. Oregon's ban protects one of the nation's oldest recreational cannabis markets, which faced price collapse due to oversupply. Hemp THC beverages are not legally sold in Oregon.

Market and Business Implications

The hemp THC beverage market reached $2.8 billion in 2025 sales, with growth concentrated in restaurants, convenience stores, and online channels, but faces existential regulatory risk. The National Restaurant Association's June 2026 lobbying effort reflects the category's economic significance to food service operators. According to the Hemp Beverage Alliance, more than 35,000 restaurants and bars now offer hemp THC beverages, generating an estimated $680 million in annual revenue. Establishments in states without recreational cannabis licenses view hemp beverages as a legal pathway to capture demand for cannabis products. Profit margins on hemp THC drinks range from 60-75%, comparable to craft cocktails and significantly higher than beer and wine. Distribution infrastructure has matured rapidly. Major beverage distributors including Reyes Holdings, Southern Glazer's Wine and Spirits, and Republic National Distributing Company added hemp THC beverages to portfolios in 2024-2025. These distributors leverage existing relationships with restaurants, bars, and retailers to place hemp products alongside alcoholic beverages. The distribution model mirrors alcohol: manufacturers sell to distributors at wholesale prices of $1.50-$3.00 per unit, distributors sell to retailers at $3.00-$5.00 per unit, and retailers sell to consumers at $6.00-$12.00 per beverage. Cannabis MSOs view hemp THC beverages as a competitive threat. Licensed operators pay effective tax rates exceeding 70% due to Section 280E of the Internal Revenue Code, which prohibits businesses trafficking in Schedule I controlled substances from deducting ordinary business expenses. A licensed dispensary selling a 10 mg THC beverage for $8.00 may net $1.50 after taxes and compliance costs, while a hemp manufacturer selling an identical product through convenience stores nets $4.00-$5.00. This disparity has fueled MSO lobbying for hemp restrictions. Investment capital has flowed into hemp beverage companies despite regulatory uncertainty. Cann raised $27 million in Series A funding in 2023, with investors including Imaginary Ventures and Goat Rodeo Capital. Recess secured $15 million in 2024 funding. Keef Brands, a Colorado-based cannabis beverage pioneer, launched a hemp line in 2023 to access markets outside state-licensed systems. The investment thesis centers on first-mover advantage: if federal regulations ultimately allow hemp THC beverages with appropriate guardrails, early entrants will dominate distribution and brand recognition. Retail data shows hemp THC beverages cannibalizing both alcohol and cannabis sales. Nielsen data from convenience stores in Minnesota showed a 12% decline in beer sales in the six months following the state's hemp THC legalization in 2022, with the steepest declines in light beer and hard seltzer categories. Conversely, Minnesota cannabis dispensaries reported slower-than-projected beverage sales after recreational legalization in 2023, with consumers continuing to purchase cheaper hemp alternatives from convenience stores. The regulatory risk is existential. If the DEA or FDA moves to ban hemp THC products, the $2.8 billion market could collapse within months. Manufacturers would face inventory write-offs, distributors would pull products from shelves, and restaurants would lose a revenue stream. The National Restaurant Association's lobbying effort aims to prevent this outcome by framing hemp beverages as a harm reduction tool and economic driver rather than a regulatory loophole.

What Experts Say

Legal scholars, public health researchers, and industry analysts offer sharply divergent views on hemp THC beverage regulation, reflecting broader tensions in cannabis policy. Robert Mikos, a law professor at Vanderbilt University and cannabis law expert, has argued that the 2018 Farm Bill's language clearly authorizes hemp derivatives regardless of intoxicating potential. According to Mikos, Congress used expansive language—"all derivatives, extracts, cannabinoids"—that cannot be limited by regulatory agencies without new legislation. He noted in a 2024 law review article that the DEA's synthetic cannabinoid argument contradicts the statutory text, as isomerization of a legal hemp derivative does not create a new controlled substance. Shane Pennington, an attorney with Vicente LLP who represents hemp industry clients, has stated that the FDA's food additive prohibition does not apply to hemp-derived THC because the agency has not conducted substantial clinical investigations of delta-9 THC from hemp specifically. Pennington argued in administrative comments that the FDA conflates different cannabinoids and different sources, and that the 2018 Farm Bill preempts the agency's food safety authority for hemp derivatives. Conversely, Rachel Gillette, executive director of the Cannabis Trade Federation, has called for all intoxicating THC products to be regulated through state cannabis systems. According to Gillette, hemp THC products undermine the regulatory frameworks that states have built to ensure product safety, prevent youth access, and generate tax revenue. She has testified before state legislatures that unregulated hemp products create public health risks because they lack mandatory testing for pesticides, heavy metals, and microbial contaminants. Dr. Nora Volkow, director of the National Institute on Drug Abuse, raised concerns in a 2025 congressional hearing about the lack of research on hemp-derived cannabinoid products. According to Volkow, the rapid proliferation of delta-8 THC and other novel cannabinoids has outpaced scientific understanding of their safety profiles, particularly regarding cardiovascular effects and potential for dependence. She called for federal research funding to study hemp-derived intoxicating products before they become further entrenched in consumer markets. Jonathan Miller, general counsel of the U.S. Hemp Roundtable, has emphasized that hemp farmers and rural communities depend on the legal hemp market created by the 2018 Farm Bill. According to Miller, prohibiting hemp derivatives would devastate an agricultural sector that provides economic opportunity in regions with few alternatives. He has argued for federal regulatory standards—including age restrictions, serving size limits, and labeling requirements—rather than prohibition. Aaron Smith, co-founder of the National Cannabis Industry Association, has acknowledged the complexity of the hemp THC issue. According to Smith, the cannabis industry supports reasonable regulation of hemp products but opposes a complete free-for-all that allows intoxicating products to be sold without testing, taxation, or age verification. He has proposed a federal framework that would allow hemp THC beverages but require them to meet the same safety and labeling standards as state-regulated cannabis products.

What's Next

The hemp THC beverage market faces critical decision points in the next 12-18 months, with congressional action, DEA rulemaking, and state legislation all potentially reshaping the landscape. The DEA's anticipated Notice of Proposed Rulemaking on hemp-derived cannabinoids represents the most significant near-term threat to the industry. The agency announced in January 2026 that it was considering clarifying the controlled substance status of synthetically derived THC, with a proposed rule expected in late 2026 or early 2027. If the DEA moves to ban delta-8 THC and other converted cannabinoids, the rule would undergo a public comment period of at least 60 days, followed by a final rule that could take effect 30-90 days after publication. Industry groups would likely challenge any ban in federal court, arguing that the DEA lacks authority to override the 2018 Farm Bill's explicit legalization of hemp derivatives. Congressional action remains possible but uncertain. The National Restaurant Association's June 2026 letter to congressional leadership requested that any hemp legislation preserve access to hemp THC beverages while establishing appropriate regulatory guardrails. Senate Agriculture Committee Chair John Boozman (R-AR) has indicated openness to hemp regulation but has not committed to specific legislation. The House Energy and Commerce Committee held hearings on hemp regulation in 2025 but did not advance a bill. Any legislative solution would need to balance competing interests: hemp farmers and restaurants want to preserve the market, cannabis operators want to eliminate unfair competition, and public health advocates want stronger controls. The 2026 Farm Bill reauthorization process could provide a legislative vehicle for hemp THC regulation. The Agriculture Improvement Act of 2018 expires in September 2024, though Congress has extended it through continuing resolutions. When lawmakers take up comprehensive farm bill reauthorization—potentially in 2027—hemp provisions will be on the table. Possible outcomes include maintaining the current framework, adding explicit restrictions on intoxicating hemp products, or creating a federal regulatory structure for hemp-derived cannabinoids modeled on alcohol regulation. State legislative activity will continue regardless of federal action. At least 12 states are considering hemp THC legislation in 2026 sessions, with proposals ranging from outright bans to regulatory frameworks. Georgia's legislature is debating a bill that would cap hemp THC products at 5 mg per serving and require registration of manufacturers. North Carolina is considering legislation to ban delta-8 THC while allowing delta-9 THC from hemp under strict limits. The state-by-state approach creates ongoing compliance challenges but also provides laboratories for different regulatory models. Market dynamics will evolve based on regulatory signals. If federal agencies signal tolerance for hemp THC beverages with appropriate guardrails, investment will accelerate and major beverage companies will enter the market more aggressively. Constellation Brands, Molson Coors, and Anheuser-Busch InBev have all explored cannabis beverage opportunities but have remained cautious due to federal prohibition. A stable regulatory framework for hemp beverages could unlock billions in corporate investment. Conversely, if the DEA or FDA moves toward prohibition, manufacturers will face difficult decisions about whether to continue operations, pivot to CBD products, or shift to state-licensed cannabis markets. The National Restaurant Association's intervention suggests that the industry now has political allies beyond hemp farmers and cannabis advocates, potentially changing the calculus for federal regulators. The public health research pipeline will provide additional data on hemp-derived cannabinoid safety and effects. The National Institutes of Health funded several studies in 2025 examining delta-8 THC pharmacology, and results are expected in 2026-2027. Findings on safety profiles, abuse potential, and health effects will inform regulatory debates.

Further Reading

• Agriculture Improvement Act of 2018, Public Law 115-334, 7 U.S.C. § 1639o — https://www.congress.gov/bill/115th-congress/house-bill/2
• DEA Interim Final Rule on Hemp, 85 Fed. Reg. 51639 (August 21, 2020) — https://www.federalregister.gov/documents/2020/08/21/2020-18466/implementation-of-the-agriculture-improvement-act-of-2018
• California Assembly Bill 45 (2023), Hemp Products — https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB45
• Minnesota Statutes § 151.72, Hemp-Derived Consumer Products — https://www.revisor.mn.gov/statutes/cite/151.72
• National Restaurant Association Letter to Congress (June 15, 2026) — https://restaurant.org
• FDA Warning Letters on Hemp THC Products — https://www.fda.gov/inspections-compliance-enforcement-and-criminal-investigations/warning-letters
• U.S. Hemp Roundtable Position Papers — https://www.hempsupporter.com
• Hemp Beverage Alliance Industry Data — https://hempbeveragealliance.org
• Brightfield Group Hemp Market Reports — https://www.brightfieldgroup.com
• New Frontier Data Cannabis and Hemp Consumer Research — https://newfrontierdata.com