Colorado company watching closely as Congress considers delay to federal hemp ban

Colorado's hemp-derived THC industry could see major changes later this year, though a federal crackdown scheduled for November may be temporarily postponed.

The U.S. Senate recently approved a spending measure that would delay implementation of a federal provision aimed at closing a loophole that allows intoxicating hemp-derived THC products to be sold nationwide. If approved by the House, the delay would push the deadline from November to December, giving lawmakers additional time to decide whether to regulate the products or remove them from the market.

The debate has created uncertainty for Colorado companies that manufacture hemp-derived THC products, including beverages designed to provide an alternative to alcohol.

At Fabric, a Colorado-based hemp-derived THC beverage company, production continues as usual for now.

"In Colorado the legal limit is very low. It's 1.75 milligrams. Our product actually comes in at 1.5 milligrams," said Fabric co-owner Tom Eddleston.

Eddleston said the company's low-dose THC beverages are intended to offer consumers another option.

"We are simply offering people an alternative to alcohol," he said.

The issue stems from the 2018 Farm Bill, which legalized hemp at the federal level. Industry groups and critics alike say language in the law created a pathway for companies to convert hemp-derived compounds into intoxicating THC products that can produce marijuana-like effects.

Last year, Congress moved to close that loophole, with lawmakers advancing language that would effectively ban many hemp-derived intoxicating products currently sold across the country. The restrictions were originally set to take effect this November.

Now, lawmakers are considering a short-term delay while they continue negotiating potential regulations and exemptions.

Opponents of hemp-derived THC products argue Congress should move forward with the ban.

"These products have introduced something that Congress never intended, which is a brand new class of intoxicating products that are harmful and addictive," said Luke Niforatos, executive director of Smart Approaches to Marijuana.

Niforatos said removing the products from the market is the best course of action.

"The absolute best decision we can make is to go fully through this ban and remove these products from shelves and corners around this country," he said.

Eddleston said Colorado already has regulations limiting THC content in hemp products and believes federal lawmakers should consider a similar approach rather than an outright ban.

"If they close the loophole, a federal ban comes into effect, and that means that these hemp products, whether it be beverages, edibles or otherwise, get lumped into marijuana," Eddleston said.

Instead, he said, lawmakers should focus on creating a regulatory framework.

"I would like to see sensible regulation," Eddleston said.

The Senate spending bill, including the proposed delay, still must be approved by the House. Lawmakers are also discussing a potential carveout that would allow certain low-dose THC beverages, including products like those manufactured by Fabric, to remain on the market.

For now, the federal restrictions remain scheduled to take effect in November.