If you’ve been following the news around Delta-8, Delta-10, or THCA products, you’ve probably noticed something strange: the federal government appears to be moving in two opposite directions at once.
On one hand, Congress just enacted the most restrictive changes to hemp law since prohibition. On the other hand, the White House is pushing to loosen restrictions on traditional marijuana. The result is a regulatory landscape that makes less sense the more you think about it.
Here’s what’s actually happening, what it means for you, and what comes next.
The Hemp Loophole Is Officially Closed
On November 12, 2025, President Trump signed the Continuing Appropriations and Extensions Act of 2026 (H.R. 5371), a funding bill that ended the longest government shutdown in U.S. history. Tucked inside that legislation was Section 781, a provision that fundamentally rewrites the federal definition of “hemp.”
This change closes the so-called “Farm Bill loophole” that has allowed the legal hemp-derived THC market to flourish since 2018.
Here’s what changed:
From Delta-9 to Total THC. The 2018 Farm Bill defined hemp as cannabis containing less than 0.3% Delta-9 THC by dry weight. The key word was “Delta-9.” That narrow definition allowed products high in other cannabinoids (Delta-8, Delta-10, THCA) to legally qualify as “hemp” as long as the Delta-9 content stayed under the limit. The new law changes the standard to “total THC,” which includes all THC isomers and analogs.
The 0.4mg Per Container Cap. Perhaps the most consequential part of the new law: finished hemp-derived cannabinoid products cannot contain more than 0.4 milligrams of total THC per container. For context, a typical 25mg Delta-8 gummy exceeds this limit by more than 60 times. A standard full-spectrum CBD tincture often contains several milligrams of total THC. Under this rule, the vast majority of consumable hemp products currently on the market would become illegal.
The Synthetics Ban. The law explicitly excludes cannabinoids that are “synthesized or manufactured outside the plant” from the definition of hemp. Since most Delta-8 is chemically converted from CBD in a laboratory setting, this provision targets the heart of the “alt-cannabinoid” industry. It also excludes cannabinoids that aren’t capable of being naturally produced by the cannabis plant.
Industry analysts estimate that up to 95% of current hemp-derived products would become federally illegal under these rules.
The Implementation Timeline
The new restrictions don’t take effect immediately. Congress included a one-year implementation window, setting the enforcement date for November 12, 2026.
That means the current situation is this: products that were legal under the 2018 Farm Bill technically remain legal until the November deadline. Businesses have a window to sell existing inventory, pivot their operations, or push for legislative changes.
The FDA was also directed to publish several lists within 90 days of the bill’s signing (by February 10, 2026), including:
- All cannabinoids capable of being naturally produced by the cannabis plant
- All THC-class cannabinoids naturally occurring in the plant
- All other cannabinoids with similar effects to THC
As of this writing, that deadline has passed and the FDA’s guidance is still being awaited, leaving significant uncertainty about how certain edge cases will be treated.
Meanwhile, Traditional Marijuana Is Getting a Second Look
Here’s where things get paradoxical. Just five weeks after signing the hemp ban, President Trump issued an executive order on December 18, 2025 directing the Attorney General to expedite the rescheduling of marijuana from Schedule I to Schedule III.
Schedule I drugs are classified as having no accepted medical use and high potential for abuse. That category includes heroin, LSD, and ecstasy. Schedule III is for drugs with moderate to low potential for dependence, like ketamine, Tylenol with codeine, and anabolic steroids.
The executive order doesn’t reschedule marijuana by itself (the president can’t do that unilaterally), but it directs the Department of Justice to complete the rulemaking process “in the most expeditious manner.” This builds on work that started under the Biden administration, when HHS recommended rescheduling in 2023 and the DEA proposed a rule in 2024 that then stalled in administrative hearings.
What this creates is a genuinely strange policy outcome: If the rescheduling goes through, traditional marijuana (cannabis that exceeds the THC limits) would be treated as a Schedule III substance with acknowledged medical uses. But “intoxicating hemp” products (like Delta-8 gummies) would fall outside the new hemp definition and potentially be classified as Schedule I controlled substances, since they’d no longer qualify as legal hemp.
In other words, the same plant could be treated very differently depending on whether you grew it as “marijuana” under state-licensed cannabis programs or processed it from “hemp” under the Farm Bill framework.
The Fight to Stop the Ban
The hemp industry isn’t accepting this quietly. Multiple legislative efforts are underway to either delay or replace the ban with a regulatory framework.
The Hemp Planting Predictability Act. Introduced in January 2026 by Rep. Jim Baird (R-IN) with bipartisan cosponsors including Rep. James Comer (R-KY) and Rep. Angie Craig (D-MN), this bill would delay the implementation deadline by two years, pushing it to November 2028. A companion bill was introduced in the Senate by Senators Amy Klobuchar (D-MN), Rand Paul (R-KY), and Jeff Merkley (D-OR). The legislation doesn’t change the restrictive definitions; it just buys time for farmers and businesses to adjust, and for Congress to work on a more comprehensive solution.
The HEMP Act. Rep. Morgan Griffith (R-VA) and Rep. Marc Veasey (D-TX) introduced the Hemp Enforcement, Modernization, and Protection Act in late January 2026. This takes a different approach: rather than delaying the ban, it would create a dedicated regulatory framework for hemp-derived cannabinoid products. Key provisions include:
- Allowing sales of consumable hemp products to adults 21 and older
- Requiring tamper-proof, child-resistant packaging
- Mandating testing and certificates of analysis
- Prohibiting marketing that appeals to youth
- Setting potency limits by product type
The Cannabinoid Safety and Regulation Act. Senators Ron Wyden and Jeff Merkley (both D-OR) reintroduced this legislation, which would establish FDA oversight of hemp products with safety standards, labeling requirements, and age restrictions. It also includes funding for prevention programs.
None of these bills have passed yet, and their prospects are uncertain. Senator Rand Paul, a longtime hemp advocate, has acknowledged that a full repeal of the ban is unlikely. The more realistic path appears to be some form of regulatory compromise.
State-Level Complications
The federal changes land on top of a patchwork of state regulations that range from full bans to comprehensive regulatory frameworks.
Some states have already moved to ban or heavily restrict intoxicating hemp products. Others, like Minnesota and New Jersey, have developed their own regulatory systems for hemp-derived THC products. Minnesota’s legal hemp industry tops $200 million, with THC seltzers becoming a significant product category for local breweries.
The question now is whether states that have regulated these products will be forced to align with federal prohibition, or whether the federal government will take a hands-off approach similar to how it has treated state marijuana legalization.
A report from the Congressional Research Service noted that “if intoxicating hemp products persist on the market after the change to their legal status, it is possible they could be subject to the same criminal and collateral issues as marijuana,” including banking restrictions and interstate commerce limitations. But the report also acknowledged that “both FDA and DEA may lack the resources to broadly enforce” against these products.
What This Means for You
If you’re someone who has been using Delta-8 gummies, THCA flower, THC seltzers, or even certain full-spectrum CBD products, the landscape is shifting under your feet.
The cliff date is November 12, 2026. Unless Congress passes new legislation, most intoxicating hemp products become federally illegal on that date. How aggressively that ban is enforced remains to be seen.
The next few months matter. The legislative window for passing delay bills or regulatory alternatives is narrowing. Hemp industry groups are urging consumers to contact their representatives.
State laws add complexity. Even if federal law tightens, some states may continue to regulate these products under their own frameworks. The degree to which federal agencies pursue enforcement in those states is an open question.
The traditional cannabis market is a potential destination. For consumers in states with legal recreational or medical marijuana programs, licensed dispensaries may offer alternatives that will remain legal. For hemp businesses, some are exploring partnerships with or licensing under state cannabis programs.
The Bigger Picture
What we’re witnessing is something that could be called “The Great Divergence”: a split in federal cannabis policy that treats medical marijuana more favorably while cracking down on the hemp-derived market that emerged from a loophole Congress never intended to create.
Whether you view the hemp industry as a wild west of unregulated products that endangered children, or as a legitimate sector that brought economic opportunity to farmers and access to millions of consumers, the regulatory reckoning is here.
The next ten months will determine whether the industry gets regulation or prohibition, and what that means for the estimated 320,000 American jobs connected to hemp.
Downtown Dry is tracking these developments closely. As the regulatory landscape evolves, we’ll continue updating our Delta THC venue listings to reflect what’s legal and where. If you’re a venue owner navigating these changes, reach out to us with questions.
