OPINION: The Looming Federal Clampdown on THC Drinks and Hemp-Derived Edibles: What It Means for the Industry

NEW YORK- The quiet addition of a single paragraph in November’s federal shutdown bill has sent shockwaves through one of the fastest-growing segments of U.S. Cannabis: hemp-derived THC beverages and edibles. Unless Congress intervenes, a nationwide ban on intoxicating hemp products will go into effect in November 2026, threatening thousands of businesses and reshaping a $24 billion sector built around the 2018 Farm Bill’s now-infamous loophole.

Craft breweries, beverage innovators, hemp processors, retailers, and farmers suddenly find themselves in a fight for survival — and the stakes stretch far beyond flavored seltzers.

This is what’s happening, why it matters, and what a sensible regulatory fix should look like.

How We Got Here: The 2018 Farm Bill Opened a Door Nobody Expected

When Congress legalized industrial hemp in 2018, lawmakers were focused on rope, fiber, and wellness supplements — not THC-infused beverages sitting on grocery shelves next to craft beer.

Hemp was defined as Cannabis containing less than 0.3% delta-9 THC by dry weight. That narrow definition created a wide opening:

• A beverage could stay below 0.3% delta-9 THC and still deliver several milligrams of intoxicating THC per can.
• CBD extracted from hemp could be chemically converted into delta-8, delta-10, and other isomers with psychoactive effects.
• None of these products were regulated like Cannabis sold in dispensaries.

As a result, hemp-derived intoxicants began appearing in gas stations, liquor stores, corner markets, and big-box chains — often with no age checks, no testing, and packaging that looked suspiciously like regular snacks.

Some states moved quickly to contain the problem. Others embraced the new category. Many did nothing. The result is a fractured national marketplace: fully legal in one state, age-restricted in another, banned in the next, and sold next to energy drinks in the one after that.

States Tried to Build Rules — But It Was Never Coordinated

Over the past two years:

• California banned intoxicating hemp outside its licensed Cannabis system.
• Texas moved toward age-restricted sales and tighter safety rules.
• Nebraska considered criminalizing possession.
• Washington cut intoxicating hemp entirely, collapsing its hemp-farming base.
• Minnesota created one of the clearest frameworks, allowing THC beverages and foods for adults 21+.

Minnesota’s model was so successful that THC drinks now sit on shelves at Target, and several Minneapolis breweries say these beverages account for 20–25% of total revenue.

But the lack of federal clarity meant the category continued to grow in ways lawmakers never anticipated.

McConnell Moves to Shut It Down

Sen. Mitch McConnell — the same lawmaker who helped legalize hemp in 2018 — pushed through a federal fix in the November shutdown bill. His measure bans intoxicating hemp products nationwide. Hemp, CBD, industrial uses, and non-intoxicating wellness products remain fully legal.

McConnell argued the change was needed to:

• Prevent teen access
• Close the chemical-conversion loophole
• Protect the original intent of industrial hemp legalization

His position drew support from two groups rarely aligned: licensed Cannabis operators, who viewed intoxicating hemp as unfair competition, and anti-Cannabis groups, who wanted the products off shelves entirely.

The Industry Fights Back — And Has One Year to Change the Outcome

The ban doesn’t activate for 12 months, giving hemp businesses a narrow window to convince Congress to replace prohibition with regulation.

Advocacy groups argue the federal ban would:

• Eliminate 300,000+ jobs
• Erase $1.5 billion in annual state tax revenue
• Shut down hundreds of breweries and small businesses that leaned on THC beverages to survive falling alcohol sales

Brewers in Minnesota and elsewhere say the ban would be fatal. Several report that THC seltzers now account for one-quarter of their business.

Lawmakers including Sen. Amy Klobuchar, Sen. Tina Smith, and Sen. Rand Paul have signaled they want a regulatory model, not an industry-ending prohibition.

What Congress Could Do Instead: A Practical Regulatory Path

The national conversation is finally moving where it should have been in 2019: toward a functional federal framework for hemp-derived intoxicants.

A credible plan would include:

1. Regulate hemp THC beverages like alcohol

• 21+ purchase requirement
• Sold where beer and wine are sold
• Clear limits on per-serving milligrams
• Strict labeling and child-resistant packaging
• Testing requirements comparable to state Cannabis standards

This treats THC beverages the same way we treat fermented alcohol: widely accessible but controlled.

2. Allow intoxicating edibles and gummies only in licensed Cannabis dispensaries

Gummies and candy-format intoxicants pose higher risks: accidental consumption, pediatric exposure, and consumer confusion with regular snacks.

Dispensaries already have:

• ID checks
• Testing frameworks
• Labeling oversight
• Trained staff who can explain dosing

This is the appropriate place for higher-potency, edible-format THC.

3. Ban synthetic conversions like delta-8 made from CBD

Chemical conversion is what turned the hemp loophole into a national safety issue. Federally prohibiting synthetic isomers would remove the riskiest products from the market.

4. Let states adopt their own additional rules

Minnesota’s model has been unusually effective. Other states may choose different restrictions. Federal policy should set the floor, not the ceiling.

A Sensible Middle Path Is Still Possible

If Congress implements a full ban, the country loses a promising new category, thousands of jobs, and a consumer-friendly on-ramp to regulated THC. If Congress allows the current unregulated free-for-all to continue, we end up with the worst possible outcomes: no safety rules, no age checks, and broad public backlash.

The logical answer sits between those extremes:

• Beverages = regulate like beer
• Edibles = dispensary-only
• Synthetic THC = eliminated entirely

That middle path protects public health, ensures fair competition for licensed Cannabis businesses, and preserves the hemp beverage category that breweries and retailers rely on.

With the clock ticking toward November 2026, Congress has a rare opportunity to fix the mess it unintentionally created — not by crushing an entire industry, but by finally giving it the regulatory structure it should have had from the beginning.