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Senate Extends Hemp Deadline as Industry Seeks Federal Regulation

The booming hemp-derived THC beverage industry received a bit of good news earlier this month.

The U.S. Senate voted on Aug 8 to pass a continuing resolution that includes a one-month extension of the federal compliance deadline for non-synthetic hemp cannabinoid products, moving the date from Nov. 12 to Dec. 11. The extension gives Congress additional time to consider federal hemp regulations before the new deadline.

Thomas Winstanley, president of Edibles.com, part of Edible Brands, said the Senate vote gives Congress more time to develop a long-term regulatory framework.

“Congress did not solve the hemp issue today. It preserved the opportunity to solve it correctly,” Winstanley said. “Today’s vote prevents the unintended consequences of an unnecessary and short-sighted prohibition that would have increased consumer risk by driving demand toward the illicit market while undermining an American industry that supports farmers, manufacturers, retailers and millions of adult consumers.”

Winstanley said the extension provides additional time to establish a national framework focused on regulation rather than prohibition.

“This extension gives Congress the time needed to establish a durable national framework built on consumer safety, responsible commerce and meaningful enforcement,” he said. “The industry has consistently aligned around these principles, and today’s outcome reflects the growing bipartisan consensus that regulation—not prohibition—is the right path forward.”

He added that the Senate action resulted from bipartisan and bicameral efforts.

“This progress is the result of bipartisan, bicameral leadership and elected officials who listened to consumers, businesses, and the Administration,” Winstanley said. “A delay is not a destination. It is the time needed to finish the work Congress has committed to, and we look forward to working alongside policymakers to get it right.”

Meanwhile, Nowadays CEO and Co-Founder Justin Tidwell said the Senate vote represents one of several positive developments for the hemp beverage industry.

“These past two weeks represent a meaningful milestone for the hemp beverage industry, as we’re seeing multiple positive signals come out of Washington at the same time,” Tidwell said. “The Senate not only voted to extend the current federal framework, providing the industry additional time to work toward a long-term solution, but we’re also seeing lawmakers advance legislation like Representative Van Duyne’s Hemp-Derived Beverage Regulatory Clarity Act, which provides a thoughtful roadmap for how hemp beverages could be regulated within the traditional three-tier system.”

Tidwell said the developments indicate that the federal conversation around hemp beverages is increasingly focused on regulation.

“While there is still significant work ahead, these developments suggest the conversation in Washington is beginning to shift from whether hemp beverages should exist to how they should be responsibly regulated,” Tidwell said. “We believe that’s an important and encouraging change for consumers, retailers, and the industry as a whole.”

The Hemp Beverage Alliance (HBA), a trade association representing 375 hemp beverage companies in the United States and Canada, also supported the extension.

According to the HBA, the measure would temporarily delay a federal prohibition on the manufacture and sale of hemp beverages while Congress considers a longer-term regulatory framework.

The association pointed out that businesses across the beverage supply chain, including craft brewers, wine and spirits distributors and liquor retailers, have entered the hemp beverage category. It also said states with hemp regulations have generated tax revenue from legal sales.

The HBA recently released an industry report that found hemp beverage sales have grown 133%. The association said a federal regulatory framework could support additional growth in the category.

The Senate action gives the industry an additional month to seek a longer-term federal solution, but the Dec. 11 deadline remains in place unless Congress takes further action.

The post Senate Extends Hemp Deadline as Industry Seeks Federal Regulation appeared first on Beverage Information Group.

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