New Bill Seeks to Regulate Hemp-Derived Cannabinoid Market

1.5 min readPublished On: September 26th, 2024By

LOS ANGELES- Senator Ron Wyden (D-OR) has introduced the Cannabinoid Safety and Regulation Act, a bill aimed at establishing a federal regulatory framework for hemp-derived cannabinoids. The proposed legislation would empower the Food and Drug Administration (FDA) to regulate products like CBD while allowing states to maintain their own rules. This bill comes at a time when the hemp market is experiencing rapid growth, yet faces regulatory challenges.

Wyden’s bill would require businesses selling hemp-derived products for human consumption to register with the FDA and comply with safety standards, including testing for contaminants and adhering to labeling requirements. Products would need to carry a “nutrition facts-like” label, and sales would be restricted to individuals over 21. The bill also includes a ban on marketing products to children and prohibits synthetic cannabinoids.

Importantly, the bill preserves states’ rights to impose tighter regulations or outright bans on hemp products, offering flexibility to local governments. However, it mandates uniform federal standards for packaging, labeling, and transportation of these products. Additionally, it clarifies the definition of “total THC content,” encompassing all forms of the cannabinoid, including delta-8 and delta-9 THC.

The bill seeks to address growing public health concerns over the largely unregulated market for hemp-derived products, particularly as more states legalize cannabis. The proposed legislation includes provisions for mandatory recalls of unsafe products and allocates significant funding for research and prevention initiatives. The FDA would be responsible for developing detailed regulations on product safety and manufacturing processes, as well as implementing marketing restrictions to prevent youth access.

The Cannabinoid Safety and Regulation Act represents a more measured approach to hemp regulation compared to other recent proposals in Congress that suggest outright bans on certain hemp products. By creating a pathway for safe, regulated products, the bill aims to stabilize the hemp industry while protecting consumers from untested and potentially harmful items.

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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