US Federal and State Authorities Scramble to Regulate Hemp Derivatives

Years after hemp was legalized with the passage of the 2018 Farm Bill, state and federal authorities are struggling to regulate its products. Following the passage of the bill, Congress failed to implement a regulatory framework for hemp products, leading to the creation of an industry where intoxicating products derived from hemp, including edibles and beverages, could be sold to essentially anyone, including minors.

Data from Whitney Economics’ National Cannabinoid Report shows that in 2023, the hemp-derived cannabinoid market’s value was an estimated $28.4 billion.

Last week, Senator Ron Wyden introduced a measure that would allow the federal administration to regulate hemp products while also preventing access to minors. In a news release, Wyden stated that marketing for marijuana products intended for adults didn’t need to be alluring to minors. He explained that federal oversight regarding hemp products was nonnegotiable and would keep untested products whose origin is unknown from getting into the hands of consumers.

Other aspects of the measure include the Alcohol & Tobacco Tax & Trade Bureau as well as the U.S Food and Drug Administration (FDA) establishing rules for the labeling and testing of products derived from hemp.

The bill is an effort geared toward engendering additional transparency to the growing hemp industry. Currently, hemp is defined as cannabis sativa that contains less than 0.3% of THC. THC is one of the primary compounds found in the cannabis plant; another primary compound is CBD. Unlike THC, however, CBD does not cause intoxication when ingested.

This isn’t the first time legislation such as Wyden’s has been introduced in the country. In 2023, the state of Washington passed SB 5367, which amended the definition of cannabis products to include products with any THC detectable by tests. Prior to the bill’s passage, normal retailers with no licenses from the state’s Liquor & Cannabis Board could put up for sale products, which contained 0.3% THC or less.

This meant that minors could easily access these products infused with THC, which included vapes and gummies.

Now other states across the country are implementing programs to manage this growing industry. For instance, California recently began implementing an emergency ban on hemp products with any THC amounts.

Under the ban, retailers are prohibited from selling any industrial-hemp beverage, food or dietary products intended for consumption by humans. The state’s Department of Health proposed these regulations, which were later approved by the Office of Administrative Law.

This move by the state came only weeks after California Governor Gavin Newsom announced the ban, focused on protecting minors from the effects of intoxicating hemp products.

Companies such as Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) hope the federal authorities come up with regulations that can form a framework from which different states can take a leaf. This will bring a measure of uniformity to the laws regulating hemp products around the country.

NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ

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