Texas Governor Backs Regulation Over Ban in Hemp THC Showdown

3.5 min readPublished On: July 25th, 2025By

DALLAS —Texas Governor Greg Abbott has drawn a firm line in the sand when it comes to the future of the hemp industry in the Lone Star State. In a public statement on July 22, Abbott clarified his preference for a tightly regulated adult-use market for hemp-derived products—countering efforts by Senate leaders pushing for an outright ban.

Abbott’s remarks follow his high-profile veto of Senate Bill 3 (SB 3), which sought to ban all consumable hemp products containing any amount of THC or other intoxicating cannabinoids. Rather than dismantling the industry, Abbott advocated for regulations that include clear THC potency limits, age restrictions, and strict oversight modeled on the Texas Alcoholic Beverage Commission.

“Let me be clear: I stand in favor of doing all we can to protect the lives of our children while also protecting the liberty of adults,” Abbott said. “We want THC levels to remain below 0.3% or three milligrams. It’s called nonintoxicating levels of hemp that would be marketed.”

Despite the governor’s call for thoughtful regulation, Senate leadership—including Lt. Gov. Dan Patrick and Sen. Charles Perry—continue to push prohibition measures. Perry reintroduced the THC ban in the form of Senate Bill 5 (SB 5) during a special legislative session that began July 21. On July 22, the Senate State Affairs Committee advanced the bill in a 10-0 vote, signaling the chamber’s ongoing intent to eliminate intoxicating hemp products altogether.

Law enforcement officials backed SB 5, citing concerns over underage access and the rapid evolution of hemp chemistry, which they claim makes regulation nearly impossible. But industry advocates, retailers, veterans, and consumers countered with calls for regulation—not elimination—emphasizing the economic contribution of the sector and its role in health and wellness for many Texans.

While the drama around SB 3 and SB 5 captured headlines, another bill quietly passed into law with sweeping consequences for the hemp-derived products market in Texas.


The Quiet Ban: What Is Texas Senate Bill 2024 and What Does It Ban?

Effective September 1, 2025, Texas Senate Bill 2024 (SB 2024) enacts a broad prohibition on a range of vape products, specifically targeting:

  • E-cigarettes manufactured in or marketed as being from China
  • Vapes containing intoxicating substances other than nicotine, including hemp-derived cannabinoids
  • Vape products disguised as everyday household items—toys, cosmetics, or school supplies—designed to appeal to minors

 

Although SB 3 dominated public debate, SB 2024 advanced with little media coverage. Signed by Governor Abbott on June 20, the legislation was introduced by Senator Charles Perry and initially focused on youth vaping and foreign-made devices. However, an April amendment significantly expanded its scope to ban any e-cigarette or vape product containing cannabinoids, kratom, alcohol, mushrooms, or similar substances—even those not containing nicotine.

By broadening the legal definition of an e-cigarette, SB 2024 effectively eliminates all hemp-derived cannabinoid vape products from the Texas market—regardless of whether they are intoxicating or compliant with current federal THC limits.

The bill passed both chambers with minimal discussion. The final version includes compromise language banning e-cigarettes wholly or partially manufactured in or branded as being from China or any nation designated as a foreign adversary, alongside its expanded list of banned substances.

Unless challenged in court, SB 2024 will take full effect September 1, 2025, leaving the Texas hemp industry without any legal path to continue producing or selling vape products that include hemp-derived cannabinoids—regardless of consumer demand or compliance with safety standards.


A Legislative Crossroads

Abbott’s dual stance—blocking SB 3 while signing SB 2024—highlights the complexity of Texas’ cannabis and hemp policy environment. On one hand, the governor is advocating for a regulated adult-use hemp market with tough enforcement mechanisms and industry oversight. On the other, the quiet passage of SB 2024 removes entire product categories from the conversation before any regulatory framework can be built.

Now, with SB 5 on track in the special session and stakeholders pushing back with warnings about economic damage and regulatory overreach, the state faces a critical inflection point.

The outcome will determine whether Texas becomes a model for balanced hemp regulation—or a cautionary tale of prohibition in the face of a thriving legal industry.

Main image: Texas Gov. Abbott

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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