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Hemp Isn’t A Loophole—It’s A Legal Industry, And It’s Under Attack (Op-Ed)

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“What this will do is put consumers at risk, steal tax revenue from municipalities and states, and ultimately hurt farmers across the nation.”

By Adam Stettner, FundCanna

Congress did something terribly shorthanded. They crammed a massive policy change into a budget deal and mistakenly called it “public safety.”

If the changes stand, it will wipe out a more than $28 billion market, kill about 300,000 jobs, and eliminate one of the best national paths we have today to safe and sensible cannabis reform and regulation. A prime example is when the government burned down a house to kill the spider.

This is not politics. The 2018 Farm Bill is an example of evil politics being used to kill an industry without having the courage to reverse it and fight back.

The Straw Man: “Unregulated hemp is dangerous, so we need a blanket ban.”

Proponents of the change argued that hemp-derived intoxicants such as Delta-8 THC are a public health threat. That it is sold to children. They are untested. That they escaped a loophole in the 2018 Farm Bill.

Although there is some element of truth in their arguments, this is not indicative of the whole truth.

In short, that narrative is written to support blanket prohibition. Every industry has bad actors, companies and people who game the system. Instead of destroying an entire industry to get rid of bad actors, you analyze the problem, determine the underlying problem, and use logic and law to create, regulate, and enforce structure.

That is not what Congress has done.

Leading this charge is Sen. Mitch McConnell (R-KY), who appears to be trying to clean up what he sees as a legislative mess he authored. In 2018, he supported the Farm Bill that legalized hemp. Today, he says this law inadvertently unleashed an unregulated flood of what he calls “gas station cannabis” and that the only solution is to shut down the entire industry.

The correct solution? A framework that includes maximum potency, laboratory testing, package size, distribution guidelines, age conditions, and a structure to enforce the above. All of this would address concerns about “gas station hemp” and the risk to children.

In short, I’m all for regulation. This is not a regulation. It is eradication.

Reality: This is a legal, licensed, thriving and job-creating industry

The 2018 Farm Bill legalized hemp. That law was written, passed and signed by Congress and President Donald Trump, who has since endorsed the benefits of CBD and cannabinoids and asserted that cannabis policy should be left up to the states.

Since then, an entire market has grown up around hemp-derived cannabinoids. Manufacturers, retailers and financial partners have invested hundreds of millions in business compliance, taxation and job creation.

Cannabis entrepreneurs have built legitimate and highly regulated businesses that now employ hundreds of thousands of Americans. Their success does not depend on speculation, but on sustainable business models, sound financial management and sustainable access to capital;

The new provisions ban products containing more than 0.4 mg of THC per container. If passed, that would wipe out 95 percent of the hemp-derived market, according to industry estimates. And it would do so without holding a single hearing or public comment period, driving an industry underground to beg for regulation.

What this will do is put consumers at risk, steal tax revenue from municipalities and states, and ultimately hurt farmers nationwide. It will drive cultivation, production and manufacturing into the black market as it has done in the case of prohibition or unexpected legal structures.

One only has to look at the state’s legal cannabis market, which still operates under federal prohibition, to see a legal market that has grown to $35 billion but has simultaneously fueled an illegal market north of $100 billion.

The ban doesn’t work. Half-baked structures and scattered laws without a clear framework, understanding of basic economic principles and lack of regulation/enforcement do not work.

“This is just the beginning”? Let’s not invent ghosts

Some in the broader cannabis industry fear this is the horse behind future attacks on legal THC. This paranoia is understandable, but wrong.

This is not part of a coordinated federal crackdown. It’s a last-minute misguided attempt to solve a real consumer safety issue using the wrong tool. The maturity of the cannabis industry will be determined by its ability to distinguish between good policy and bad process. It is the latter.

Every part of the plant, regardless of label, requires logic, science-backed education, data, debate, and sensible, thoughtful regulation.

Do you want security? Regulate, not abolish

Intoxicating products must be tested, sales must be restricted to adults, packaging and potency must be clearly labeled. This is called regulation.

We regulate alcohol, tobacco and caffeine. We regulate thousands of other industries. What we don’t do is ban entire industries through the fine print in budget bills.

If Congress wants to fix the Farm Bill’s flaws, hold hearings. Invite scientists. Ask the Food and Drug Administration for guidance. Bring industry leaders to the table. What we don’t need is a hidden policy reversal tucked into a spending bill without public debate.

Over the decades, prohibition brought us figures like Al Capone and El Chapo, and created drug trafficking from all corners of the world. It involves crime, money laundering, loss of life, and it’s all pointless. What will the ban create in this case? Just imagine.

Although scientifically less dangerous than cannabis, the regulated alcohol and tobacco industries today employ millions, generate billions in sales and, above all, provide consumers with standardized and safer products through proper oversight. Yet we continue to vilify and ban rather than regulate.

The financial consequences are real

Ban hemp, and you haven’t gotten rid of “gas station” hemp.

You kill an entire industry, even the good parts. You eliminate hundreds of thousands of jobs. You eliminate tax revenue at the federal and state and municipal levels. You immediately take $30 billion out of the economy and push that money into illegal channels. You’re directly putting the product you’ve outlawed into the hands of children and those you claim to protect. Eliminating jobs and the possibility of regulation, oversight, safer products and age-status in the process.

Banning the industry does not protect consumers, it penalizes law-abiding and responsible business owners who are open to regulation and oversight.

The cannabis industry doesn’t want a free pass, but it deserves fair and responsible regulation. That starts with policy making that is deliberate, transparent and informed by the people doing the work on the ground.

Congress, your actions have created a much bigger problem than the problem you were trying to solve. If you want to keep our children safe and support our farmers and industries, do it the right way by regulating with logic. There is a way to have it all, this isn’t it.

Adam Stettner, CEO of FundCanna, has overseen more than $20 billion in loans in underserved markets.

Max Jackson’s photo.

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US (CA): 1.1 million-square-foot warehouse coming soon to Desert Hot Springs

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Plans for a major cannabis development along Interstate 10 in Desert Hot Springs have been shelved, and the project could now become a 1.16 million-square-foot distribution warehouse. This change comes at a time when the cannabis industry is struggling with the problems of a saturated and high market.

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White House Raises Alarm About ‘High-Potency’ Marijuana And Its Marketing In New National Drug Strategy

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The White House released a new National Drug Control Strategy on Monday that raises the alarm about “high-potency” marijuana and expresses concern that international cartels and criminal groups are “exploiting” state cannabis laws. It also discusses the federal recriminalization of THC hemp products, which is planned for later this year under a law signed by President Donald Trump.

The publication of the new 195-page document by the White House’s Office of National Drug Control Policy (ONDCP) comes after a few weeks. The Trump administration announced that it is moving forward with a plan to reschedule marijuana according to the federal law, it does not mention this reform.

Instead, sections on cannabis focus largely on concerns about health effects and commercialization as more states implement legalization.

“The marketing of addictive substances poses a significant threat to the health of young people. Legal does not mean safe, and the industries that sell nicotine, alcohol, marijuana and psychedelics have adopted strategies similar to Big Tobacco’s historical targeting of young audiences,” the ONDCP strategy states.

“The commercialization of marijuana plays a role in normalizing use, increasing access and reducing the perception of harm risk among young people,” he says. “Marijuana products today are of unprecedented potency, often highly processed, aggressively advertised and often packaged to appeal to minors.”

The White House document also states that “converging evidence from multiple sources suggests that cannabis exposure increases the risk of psychosis, and that preventing marijuana use may serve to reduce the prevalence of psychosis, in addition to reducing cannabis use disorder and other consequences.”

It also “talks about young adults with great potential whose futures were stolen by drug-induced psychosis and high-potency marijuana-related suicides.”

“Despite the different legal status of marijuana in the United States, there are still Americans who suffer from addiction and side effects of marijuana and related products, such as psychoactive hemp derivatives or other high-THC products, and they deserve help. People who are addicted to marijuana may not realize that withdrawal can cause insomnia and anxiety, rather than treating drug-induced symptoms effectively. Psychosis, if diagnosed and treated early, schizophrenia or mitigates the potential impact on the progression of another serious mental illness, also known as scromiting, due to screaming and vomiting, is a common condition related to long-term marijuana and addiction and currently there are no drugs approved by the FDA such as marijuana addiction or withdrawal However, there is help for those who want it, and the tools to quit marijuana addiction should be made more accessible.

“While all drugs carry some degree of risk, marijuana has the highest conversion rate from psychosis to schizophrenia and bipolar disorder,” says Trump’s ONDCP. “Drug use is also associated with suicide, and marijuana was the number one drug found in toxicology reports of people who died by suicide under the age of 25 in Colorado and San Diego, more than alcohol or any other drug.”

“It is important that consumers are made aware of the health risks associated with marijuana use, including damage to heart health, cognition, and cancer. In a California study, from 2005 to 2019, cannabis-related diagnoses in emergency department visits increased by 1,800% for seniors 65 and older. Additionally, research indicates that marijuana can contain fungi that cause serious and often fatal infections and immunosuppressants. in people with conditions such as cancer, transplantation or HIV infection.

The document states that “marijuana smoking rates in the United States have surpassed tobacco use” and that “marijuana addiction or cannabis use disorder affected 20.6 million, or 7.1 percent, of Americans age 12 and older in 2024, and is the leading reason for seeking addiction treatment for those under 20.”

“According to the 2024 National Survey on Drug Use and Health (NSDUH), in 2024, for the first time, the number of Americans suffering from a drug use disorder exceeded the number suffering from an alcohol use disorder. This change has been driven primarily by the increase in marijuana use and addiction rates. We need to ensure that Americans who want marijuana are a tool and addiction. Withdrawals.”

Although Trump approved an initiative to legalize marijuana that appeared on the ballot in Florida in 2024, the administration’s document raises the alarm about “transnational criminal gangs that transport, store and sell illegal drugs in American communities, including interstate distribution of illegal drugs.”

Of particular concern are China-linked groups that “exploit state marijuana laws to establish large networks of illegal cultivation and interstate distribution,” the ONDCP said.

“The marijuana trade in the U.S. is no longer a low-level, scattered problem; it has been co-opted and industrialized by sophisticated, transnational criminal organizations, especially those with ties to China. These groups systematically exploit states where marijuana has been legalized under state law, taking advantage of these lax markets and regulations to establish a massive, unlicensed Oklahoma cultivation operation. Chinese criminal gangs operate more than 80% of the state’s thousands of marijuana and hemp farms. Scale it is terrible: in 2023, the state’s marijuana production exceeded the authorized medical requirement by at least 32 times, and 85.5 million plants remain unconsumed. These operations to supply the national black market for local marijuana consumption are not only the focus of agricultural crime, the trafficking of exploited workers, sophisticated money laundering and the use of dangerous pesticides that threaten public health and the environment.

The White House drug strategy also discusses hemp products at length.

Hemp derivatives with less than 0.3 percent delta-9 THC by dry weight were made federally legal under the 2018 Farm Bill signed by Trump during his first term. But late last year, the president signed new legislation containing provisions that will redefine hemp so that only products with a total of 0.4 milligrams of THC per container will be legal starting November 12th.

“The administration has been given new legislative authority to address certain psychoactive hemp-derived cannabidiol substances through the “hemp loophole closure” passed as part of the Agriculture, Rural Development, Food and Drug Administration, and Adopted Agencies Act funding bill for fiscal year (FY) 2026,” ONDCP said. the document says, “Closing these domestic sources of harmful substances is critical to degrading the overall availability of illegal drugs in our communities.”

“Psychoactive derivatives of hemp are a growing concern. Although the hemp plant itself contains small amounts of cannabinoids, such as delta-8 THC, delta-10 THC, THC-O-acetate, THCP, and other THC analogs, they are often produced in laboratories, and the latest products in the 2018 Farm Bill have proliferated. Containing these chemicals will be considered controlled chemicals under the Hemp Restriction Regulations, which take effect in November 2026. these are often sold in smoke shops and gas stations, are not regulated and may contain dangerous chemicals or psychoactive substances. In many cases of psychosis and suicide attempts, according to international conventions, cannabinoids are considered Schedule I drugs, and some states have banned these potentially dangerous products.

They say law enforcement will “increase efforts to prosecute the illegal production and distribution of dangerous substances originating in the United States,” including “targeting retail operations, such as vape and smoke shops, that illegally market harmful products, particularly to minors.”

In the meantime Trump recently asked Congress to take action to change the language of the hemp cannabinoid ban signed the law to allow sales of full-spectrum CBD products to continue, it is unclear how much he wants to reduce the scope of the scheduled federal restrictions and what kind of revised THC rules and limits he would prefer to sign into law.

Meanwhile, the ONDCP says the administration will “work to improve drug testing in clinical settings,” noting that “currently used hospital tests do not detect nitazene, psilocybin, or psychoactive hemp products such as delta-8 THC, and may not detect all fentanyl analogs.”

ONDCP Director Sara Carter Bailey has before expressed his support for medical cannabis, while stating that he has “no problem” with legalizationeven if you may not personally agree with the policy.

“I have no problem if it is legalized and controlled,” he said in 2024. “I mean, I may have my own issues about how I feel about it, but I think it’s a great way to treat cannabis for medicinal and medical reasons – especially for people with cancer and other diseases, you know – to treat the side effects of those diseases and illnesses and not the medicine. Saying we should make it illegal.”

Marijuana Moment is made possible with the help of readers. If you rely on our pro-cannabis journalism to stay informed, consider a monthly Patreon pledge.

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New 1-hour express cannabis delivery service launches in San Jose

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San Jose-based family-owned cannabis dispensary, Purple Lotus, has announced the launch of Lotus NOW, a Priority Delivery Program that delivers premium cannabis from store to door in an hour or less. The program is now available at plpcsanjose.com/lotus-now and is available to adults 21 and older in more than 51 cities in Santa Clara, Alameda, San Mateo and Contra Costa counties.

Lotus NOW tackles the long wait times associated with traditional cannabis delivery. Orders placed through the program are prioritized instantly, fulfilled by Purple Lotus’ in-house drivers and supported by real-time GPS tracking and automatic SMS updates, giving customers complete transparency from payment to out the door.

“Our customers have been asking for faster shipping for years. Lotus NOW is our answer, not just faster, but a completely better experience. Live tracking, real inventory, our own drivers and the quality people Purple Lotus has trusted for 15 years,” said Matt Krishnamachari, founder of Purple Lotus.

Key features of Lotus NOW include express delivery in one hour or less, live GPS tracking, automatic text notifications, live sync inventory showing only in-stock products and flexible payment by debit card, cash or Treez Pay. All deliveries are handled by Purple Lotus trained staff only, with no third party courier services. Customers receive an SMS confirmation immediately after ordering, followed by additional updates when the order ships, the driver is on the way, and upon arrival.

The Lotus NOW catalog covers the full range of cannabis categories available in California, with live inventory updates that show only what’s currently in stock, eliminating the common frustration of placing an order only to find out items are unavailable. Lotus NOW currently ships to more than 51 Bay Area cities, including San Jose, Santa Clara, Sunnyvale, Mountain View, Palo Alto, Cupertino, Milpitas, Campbell, Los Gatos and Saratoga, as the flagship service of the San Jose express delivery program.

New customers can start using Lotus NOW by visiting plpcsanjose.com/lotus-now, performing a one-time age and identity verification and placing an order from any address in the service area. Existing Purple Lotus customers can choose Lotus NOW directly from their account dashboard with no additional setup required. The program operates during all hours of licensed delivery of California cannabis, seven days a week, with availability throughout the priority routing window.

For more information:
The purple lotus
https://plpcsanjose.com/

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