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- The Federal Hemp Ban Is Here, What’s Next for Our Industry? - Herbal Profiles #114
The Federal Hemp Ban Is Here, What’s Next for Our Industry? - Herbal Profiles #114
How the Hemp Industry Is Responding to the Federal Ban—and Why the Next 12 Months Matter More Than Ever


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Welcome Note
Welcome Back Gardeners to the 114th edition of Herbal Profiles!
Happy Friday yall!
I think we can all agree this has been a news packed week. I am pretty much just sharing updates and news surrounding the government reopening and the hemp ban.
On a side note, if you’re here and you enjoy this newsletter please do me a favor hop over to Youtube or Spotify and subscribe. It’s free, you won’t get anything extra in your inbox besides this weekly email, and it helps me grow. I would love to hit 1,000 subscribers on my Youtube channel and 200 subscribers on Spotify before the end of 2025. I would really appreciate the support, even if you don’t use Youtube!
Let’s get into it.
-Lars
The subreddit I moderate with Chris Fontes has over 1,600 subscribers! And my other subreddit for the broader CPG industry is also growing, hitting over 300 subscribers. I would love to have you join us on either or both subreddits!
The Free Spirits Podcast with David Gonzalez and myself just dropped an emergency podcast with Chris Lackner on Wednesday.
In case you missed last week’s episode with Spencer Ploessl, check it out.
Any comments or questions? Leave comment on this post or shoot me an email. Would love to hear from you!
News Roundup
The Drinkable Company Unveils THC Espresso Spirit “BLK MGK” with Caffeine Kick - The Drinkable Company & founder Mark Mahoney are releasing our THC-infused espresso hemp spirit, BLK MGK, this month! 85mg THC / bottle, 5mg THC + 75mg Caffeine* / 1.5oz shot (*caffeine equivalent to 1 shot of espresso). With coffee that awakens, hemp that grounds, and energy that sharpens without chaos.
Breaking Down the Shutdown Deal, From Back Pay to a $500,000 Surprise - The WSJ breaks down what’s actually inside the government shutdown deal, including back pay and several unexpected policy riders. One of those riders includes a new federal definition of hemp, setting up a national crackdown on hemp-derived intoxicants. The clause is already sending shockwaves through cannabis-adjacent industries.
Congress tightens THC restrictions on hemp, closing farm bill loophole - CNBC reports that Congress has moved to ban hemp-derived THC products above 0.4mg per container, effectively shutting down the entire intoxicating hemp market. Lawmakers argue the rule closes a “loophole,” while industry leaders warn it will wipe out thousands of small businesses overnight. The ban is tied to the must-pass government funding bill.
What’s In The Government Funding Bill? Lawmakers Add A Hemp Crackdown. - NPR highlights how Congress tucked a sweeping hemp crackdown into the broader government funding bill. The new definition would criminalize most hemp-derived THC beverages and gummies currently on shelves. Lawmakers and analysts note it could devastate a fast-growing industry with little debate or public input.
The Morning Show w/ Thom Brennaman - On Thom Brennaman’s show, guests discuss the federal push to ban intoxicating hemp products and the confusion surrounding the new THC limits. The segment emphasizes how quickly the category has grown — and how sudden federal action could leave consumers and businesses scrambling. It also highlights frustration with Congress for moving without clear regulatory guidance.
Federal hemp ban could block THC drinks, gummies in Ohio - Ohio lawmakers say the federal hemp ban would immediately outlaw popular THC drinks and gummies in the state. Small businesses report that the sudden shift threatens payroll, investment, and regulatory systems they’ve already built. The article notes the ban’s 0.4mg rule could override state-level frameworks entirely.
THC gummies, drinks face ban under provision in government spending bill - ABC News outlines how the spending bill would ban nearly all intoxicating hemp products nationwide, including THC drinks and gummies. Lawmakers say they’re aiming to protect youth, while business owners warn it will destroy a legitimate industry with strong adult demand. The story includes consumer reactions and concerns about turning the market underground.
Hemp industry faces extinction as Congress moves to crush THC drinks - The Hill reports that industry leaders fear the hemp sector could be “wiped out” if the new THC restrictions pass. Advocates say the ban threatens tens of thousands of jobs and billions in economic activity, despite growing consumer demand for regulated alternatives to alcohol. The article underscores the urgency of lobbying Congress before the final vote.
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The Federal Hemp Ban Is Here, What’s Next for Our Industry?
Well, it happened. The government is reopened and we have 365 days to fight for the future of this industry. The language, tucked into the government funding bill, redefines hemp and sets a strict 0.4mg THC per container limit, with a one-year delayed implementation. For many, it feels like the rug has been pulled out from under a $25–70 billion industry, threatening thousands of jobs, small businesses, and the future of innovation in the beverage space.
But if you’re reading this, you’re probably asking the same question as everyone else: What do we do now?
This Is Not an Immediate Ban, Business Continues (For Now)
First, let’s clear up the biggest misconception: the ban is not immediate. As Chris Lackner of the Hemp Beverage Alliance emphasized in our podcast earlier this week “It’s business as usual today, tomorrow, next week, next month, next year—until we get a regulatory framework in place.” Distributors, retailers, and consumers are still buying and selling hemp beverages. This delay is an opportunity, with some pressure, to organize, advocate, and fight for our future.
The Industry Is Mobilizing, And You Should Too
The past week has seen an unprecedented surge in grassroots and industry-level advocacy. The message was clear: Don’t let Congress kill hemp. Organizations like the U.S. Hemp Roundtable, state guilds, and the Hemp Beverage Alliance are urging everyone including operators, employees, consumers, and supply chain partners to contact their Senators and Representatives. The ask is simple: support efforts to strike or amend the ban, and push for a science-based, regulated framework instead of prohibition.
What’s at Stake? More Than Just Beverages
The new law doesn’t just threaten hemp drinks. It risks upending the entire supply chain of farmers, processors, retailers, and even the regulated cannabis industry, which relies on hemp-derived cannabinoids for many products. An interesting bit of information I saw from one industry leader noted, “If CBD is scheduled, regulated cannabis will have to grow and track it themselves, making minor cannabinoids much more expensive and less accessible.”
The ban also ignores the reality that prohibition doesn’t work. As Chris Lackner pointed out, “If you push this market underground, you empower the bad actors and lose all the progress we’ve made on safety, testing, and age-gating.” The risk of a black market is real, and so is the loss of tax revenue, jobs, and consumer choice.
A Year to Fight
The one-year delay is a double-edged sword. It gives the industry time to organize, but also means the clock is ticking. The consensus from advocacy groups is clear: use this time wisely. That means:
Building coalitions across hemp, beverage, retail, and even labor unions.
Pushing for hearings and debate on the Wyden and Griffith hemp regulatory bills, and supporting Senator Rand Paul’s amendment to strike the ban.
Engaging at the state level to protect existing markets and prevent premature state bans.
Educating lawmakers and the public about the difference between responsible, regulated products and the “bad actors” that prohibition will only empower.
Stay United, Stay Professional, Stay Loud
Finally, the most important message: Don’t give up. The past week has shown the power of a united industry, one that can move from “fog of war” to focused action. As one leader put it, “We are a national discussion now, in the media and on Capitol Hill. All of those factors are in our favor.”
So keep calling, keep organizing, and keep selling. The fight for hemp is far from over, and with a year on the clock, the next chapter is ours to write.
For more resources, scripts, and updates, visit hempbeveragealliance.org and hempsupporter.com.
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