- Herbal's Newsletter
- Posts
- Why CBD Wellness Is Suddenly on the Federal Chopping Block - Herbal Profiles #116
Why CBD Wellness Is Suddenly on the Federal Chopping Block - Herbal Profiles #116
Millions rely on CBD daily. Congress may take it all away.

Welcome Note
Welcome Back Gardeners to the 116th edition of Herbal Profiles!
Happy Friday yall! I hope you didn’t miss me too much last week. I took the whole week off from work and just spent time with my family. It was kind of a last minute decision, so I apologize for not giving you the heads up. But I am back and what an awesome few weeks it’s been on a personal note. My podcast with David Gonzalez had some pretty cool stats in our UnWrapped for the year! So thank you so much for that and listening to the show.

Additionally, if you’ve been here all year, you know that I had a pretty big BHAG at the beginning of the year, and am currently on pace to fall just short of the goal. But it’s still been an amazing here, and that’s in a big part due to all of you!
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 1,700 subscribers! And my other subreddit for the broader CPG industry is also growing, hitting over 400 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.
The latest episode of the Podcast dropped this week with Peter Olander, founder of Happie! If you haven’t listened yet, be sure to check it out and subscribe to the podcast to never miss another!
In case you missed last week’s episode with Chris Lackner, 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
5 things THC drinkers in Minnesota should know about the federal ban - The Star Tribune outlines key implications of the proposed federal ban on hemp-derived THC drinks for Minnesota consumers. The piece highlights legal uncertainty, local lobbying efforts, and how breweries like Utepils and Indeed are reacting.
What a federal ban on THC-infused drinks and snacks could mean for hemp industry - The LA Times breaks down how a federal ban could affect thousands of hemp-based food and beverage companies. Industry leaders warn of sweeping impacts on small businesses and adult-use consumers if Congress enacts broad restrictions.
It’s not just THC gummies and drinks: CBD products on federal hit list, too - Proposed legislation could restrict a wide range of hemp-derived products, including CBD oils, topicals, and pet supplements. MinnPost reports that the draft bill targets both intoxicating and non-intoxicating hemp products.
Hemp THC drinks were the hottest thing in zero-proof culture. Congress just put them on notice - Fast Company explores how hemp-derived THC beverages became a popular option in the zero-proof movement—and how Congressional action now threatens their momentum. The article notes rapid category growth alongside growing regulatory pressure.
What a federal ban on THC-infused drinks and snacks could mean for the hemp industry - The Daily Journal reports that a federal ban could lead to product recalls, halted sales, and legal battles across the hemp supply chain. Analysts suggest smaller brands without legal resources would be most vulnerable.
Alderman’s push for citywide hemp ban would cost city hundreds of jobs, business owners say - Chicago’s proposed citywide hemp ban is drawing backlash from local business owners who warn it would eliminate jobs and close storefronts. The measure targets intoxicating hemp products and has yet to be voted on by the City Council.
How will new US legislation reshape the hemp THC drinks market? - Just Drinks examines how pending U.S. legislation could shift the business model for hemp THC beverages. The article reviews likely changes to distribution, retail strategy, and product positioning in a post-regulatory environment.
📰 Got news? Submit it here! 📰
Any other questions or inquiries you can respond to this email or DM me on Twitter

Light, playful, and made to fit any occasion.
Low-sugar. Alcohol-free. Designed for curiosity and connection.
🟢 15% off anytime with code LMM15
🟢 Easy to mix, easy to sip
🟢 A better way to bring good vibes to the table
CBD’s Collateral Damage: The Ban That Could Wipe Out Wellness for Millions
If you’re paying attention to this newsletter, you likely have come to the conclusion that I spend a lot of time on Reddit. And that assumption is quite accurate. And with that, I see a ton of misinformation on there, and a comment in the r/cannabis subreddit had quite a few upvotes, even if all the responses to it disputed the sentiment, but the comment mentioned how CBD products won’t be effected by the federal ban introduce when the government reopened.
That’s just not true.
“If not, it would end our business; it would bankrupt us.”
Paul Loeffler, owner of three CBD “Health and Wellness Lounges” in Minnesota, isn’t mincing words. For years, his shops have served a steady stream of older adults, parents, grandparents, retirees, seeking relief from pain, insomnia, and anxiety. Their preferred remedy? Full-spectrum CBD gummies, tinctures, and capsules, products that contain a trace of THC for what’s known as the “entourage effect.”
If you’re a subscriber to this newsletter you’re likely fully aware by now, but incase you’re not, a new federal law, quietly tucked into the bill that ended the government shutdown, could make nearly all of those products illegal by November 2026. “They would be gone,” Loeffler says. “It may as well be zero.”
A Ban That Goes Beyond “Intoxicating”
The headlines have focused on THC drinks and gummies, but the new law’s reach is much broader. Starting next year, any hemp product, drink, gummy, oil, or balm, with more than 0.4 milligrams of THC per container will be banned nationwide. This ban goes well beyond a crackdown on “intoxicating” products. It will be a death sentence for most full-spectrum and even many broad-spectrum CBD products, which millions of Americans use for everyday wellness.
Jonathan Miller, general counsel for the U.S. Hemp Roundtable, says the “vast majority” of CBD products have “a little bit of THC, perhaps one or two milligrams, to have the effect customers seek.” The new cap, he warns, “will decimate the CBD industry if it goes into effect.”
Who gets hurt?
Seniors: Many rely on full-spectrum CBD for sleep, arthritis, and pain.
Veterans: A large population uses CBD for PTSD, pain, and sleep.
Wellness consumers: Parents, athletes, and people with chronic pain will lose access to their preferred products.
Small businesses: Retailers and wellness shops face bankruptcy.
A Policy Paradox: Medicare Opens a Lane, Congress Slams It Shut
In a twist of policy whiplash, the Centers for Medicare & Medicaid Services (CMS) is preparing a rule that would let Medicare Advantage plans cover certain hemp-derived CBD products. For the first time, seniors could get some CBD products covered by insurance, if those products are legal under state and federal law.
But the new federal cap could make most of those products illegal, creating a contradiction that’s hard to ignore. As Policy Decoded put it:
“Washington is starting to sort hemp by context instead of treating it as one thing… Health and wellness CBD is being pulled toward a medical frame, where plans can ask for labeling, dosing logic, and outcomes data, and where a small universe of compliant products might eventually share shelf space with more traditional tools for pain, sleep, and anxiety.”
The Science and the Market
The U.S. CBD market was valued at $6.7 billion in 2023 and is still growing, with products for pets and humans. Most users want “full spectrum” for the “entourage effect” trace THC is part of the appeal and efficacy. While the FDA has only approved one CBD drug (Epidiolex for epilepsy), millions use over-the-counter products for wellness.
Leili Fatehi, owner of Crested River Cannabis in Minnesota, says the 0.4mg-THC threshold is “virtually nothing” and would eliminate most of her product line. “A lot of people buy CBD products who aren’t looking for anything that is intoxicating. They want it for inflammation or sleep or whatever, any range of wellness functions.”
What’s Next: Can the Ban Be Stopped or Modified?
The law doesn’t take effect until November 2026, giving the industry a year to fight back. Industry groups like the U.S. Hemp Roundtable and the Hemp Beverage Alliance are lobbying for a fix, hoping to carve out exceptions for non-intoxicating CBD. Some states are considering their own frameworks to preserve access.
But the clock is ticking. “If a farmer has uncertainty, they’re not going to plant,” says Kevin Hilliard, co-founder of Insight Brewing in Minneapolis. “If not, it would end our business; it would bankrupt us,” echoes Loeffler.
The Human Cost
For many, the ban is more quality of life than it is business. My parents all take CBD to sleep. I personally know many folks using CBD for anxiety and sleep. Loeffler’s 78-year-old father once scoffed at CBD as “witchcraft,” but now swears by it for sleep. “They’re looking for relief from the normal aches and pains of aging, insomnia and other ailments and find it in CBD products, which are promoted as having healthful benefits and providing relaxation,” Loeffler says.
If the ban goes through as written, millions of Americans, especially the most vulnerable, will lose access to the products they trust. The question is whether Congress will listen before it’s too late.
What Can You Do?
Contact your representatives: Let them know how the ban would affect you or your loved ones.
Share your story: Industry groups are collecting testimonials to show the real-world impact.
Stay informed: The next year will be critical for the future of CBD and hemp wellness in America.
Exclusive Coupons - THC Drinks, Health, Wellness, and more
If you’re restocking your THC drinks, here’s a quick reminder, I’ve got verified discounts for a lot more than just infused beverages. The list includes some of my favorite brands across wellness and lifestyle: Ten Thousand for training gear, Ursa Major for skincare, Laundry Sauce for elevated essentials, and of course, the best THC drinks like Cann, Willie’s Remedy, and oHHo. I keep it updated monthly so you always have an easy place to save.


Reply