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Hemp-derived THC is the new Drug War boogeyman even the cannabis industry loves to hate
Hemp-derived THC is the new Drug War boogeyman even the cannabis industry loves to hate
✍️By ZRIntel Editorial Team📍Washington, USA
On October 24, 39 state attorneys general sent a letter to congressional leaders asking them to close a loophole in federal law that created a nationwide gray market for hemp-derived THC products. This was not the intention when Congress passed the 2018 Farm Bill legalizing hemp farming. However, clever exploitation of loopholes by growers over the past several years has resulted in a multibillion-dollar industry selling products designed to mimic the high of cannabis while dodging federal prohibition and state regulations. The language employed by the attorneys general echoes the familiar rhetoric used during the long American Drug War. The Farm Bill is being described as being "exploited by bad actors" to sell "harmful products" that are "marketed to minors," which poses a threat to "public safety and health." Many states have enacted local laws to restrict hemp-derived THC products, with Washington notably banning sales of such products by anyone other than licensed cannabis retailers. Nevertheless, residents in Washington can still order these products online, circumventing local legislation and regulations that affect the legal cannabis industry. This contradiction highlights the disparity in oversight that has turned the legal cannabis sector against hemp-derived THC products, driven more by financial interests than ethical considerations. Legal cannabis businessesoperating under stringent state regulationsfind themselves at a disadvantage against the unregulated hemp-derived THC market. The growers of hemp-derived products benefit not only from lower operational costs due to less stringent regulations but also from the absence of taxes that burdens recreational marijuana. This situation allows them to access essential financial services like FDIC-insured banking, further exacerbating competition against the legal cannabis sector. Despite popular belief that the cannabis industry is united against prohibition, many are now lobbying for further criminalization of hemp-derived THC because it poses a financial threat. As cannabis remains illegal in 24 states, states like Florida and Texas have not enacted bans on hemp-derived THC products, intensifying competition within the industry. The increase in lobbying efforts, as reported by Bloomberg, reflects the deepening divide within the cannabis sector, fueled by profit motivations. Hemp defenders, led by U.S. Sen. Rand Paul of Kentuckya state that has seen considerable growth in hemp productionhave rallied against efforts to close this loophole. Pauls threats to impede major legislation if efforts to regulate hemp-derived THC gather momentum are indicative of the heightened stakes involved. As the market for hemp-derived THC continues to grow, the broader social and legal implications become evident. Lawmakers and regulators will have to consider not only the implications for public health but also the financial viability of an industry that is rapidly evolving. As evidenced by the varied state responses and legislative proposals, a comprehensive national strategy addressing these products will be essential to ensure both public safety and market fairness.