As November 2026 lurks ever closer, industry leaders have become alarmed. That’s when a federal ban on all but a few hemp-derived products will go into effect, endangering the future of hemp-derived products in the United States. Jonathan Miller, general counsel for the US Hemp Roundtable, explains some of the consequences of the looming prohibition. If passed, the new definition would restrict hemp products to no more than 0.4 mg of THC per package, a drastic change from today’s standard of under 0.3% delta-9 THC.
The upcoming prohibition is set to shake up the recently formed marketplace of things like CBD tinctures, balms, and THC-infused drinks. Under this ambiguous ruling, Miller is optimistic regarding the future of states like Minnesota, Kentucky, and Louisiana to continue functioning under their existing hemp regulations. Interstate commerce and online sales of these products will be severely hampered.
Industry leaders, including Josh Kesselman, the CEO of Raw, are raising the alarm. They express concern that CBD product prices will balloon if the ban is implemented as currently proposed. As discussed below, this significant price increase would profoundly change the landscape for consumers and retailers.
Changes in Product Availability and Composition
The proposed ban further narrows the definition of hemp. As such, it will shift the market for popular hemp-derived products with an impact on their price and supply. National sales figures paint a picture of a robust marketplace for these products. This proposed amendment caused a great deal of concern among alarm manufacturers and consumers.
According to David Reich, CEO of Crescent Canna, it’ll have a huge impact—especially on THC beverages. In fact, Crescent Canna has been identified by Nielsen as the leader in THC seltzer sales. Reich states, “It was really exciting when Nielsen entered the category because it legitimized us in the grocery space.” He adds a note of caution: “In 12 months, if nothing changes, unless we become a different kind of company, we won’t exist.” His sentiments are representative of a larger nervousness across the industry about how to remain sustainable under newly changing regulations.
If distributors opt to abandon products due to changing standards, it could lead to reduced availability in stores and online platforms. Reich highlights that “distributors have extremely high standards. They’re not going to jeopardize their businesses to release less than the highest quality products to their partners.” This worry resonates with many other movers and shakers from the business world. They are worried that the national ban would put not just their business—but the whole industry—at risk.
The Role of Terpenes and Alternative Ingredients
The third area of concern is the implication this has for product formulation. Jasmine Johnson, CEO of GŪD Essence, makers of Melissa Johnson’s favorite moisturizer, makes an interesting point. As she describes, the effects consumers are seeking from hemp products are not limited to cannabinoids but to terpene expression. She argues that “Many of the effects consumers love are not solely tied to cannabinoids – they’re tied to terpene expression.”
Johnson is already looking down new paths for product development, in anticipation of a regulatory landscape that may shift. She explains that plants and flowers, such as lavender and chamomile, provide functional benefits to achieve a greater sense of calm and focus each day. “Plants like lavender, chamomile, lemon balm, kanna, holy basil, cacao, and even certain mushroom blends offer functional support for calm, focus and mood,” she explains. “We’re already researching these pathways through our formulation team and academic partners.”
This creative maneuver only serves to underscore a greater reality — regulations aren’t going away anytime soon. To survive in this fast-changing environment, businesses need to be more agile.
Consequences for Interstate Commerce
The proposed changes pose significant implications for interstate commerce within the hemp industry. Miller draws attention to an important worry. He’s cautious, too, that if hemp is severely restricted on the federal level, states with more permissive laws might find themselves at legal standstills. “States have got marijuana programs that are federally illegal and they still sell products. So that will continue,” Miller asserts. He cautions that “the problem is there’ll be no more interstate commerce.”
Kesselman echoes this sentiment: “Everyone will do everything we can, but it won’t be the same as just having a natural plant.” This highlights a critical point: as companies grapple with compliance and market access under the new regulations, product effectiveness may decline.
A third group of industry leaders is hoping to hear good news on a national ban of hemp products. Most of them are cautiously optimistic that legislative changes will spur further growth and innovation in the nascent sector. The stakes are astronomically high. If we do not remove the ban, huge parts of the industry might be lost even as it has transformed and grown so swiftly since inception.