REGULATORY UPDATES

by KRYSTINA SKIBO

In mid-January, Representative James Baired( R-IN) introduced a bill that would give the hemp industry two more years before a federal ban on THC products would take effect.

The legislation, H. R. 7010, would extend the current oneyear delay of the ban to three Congressman James Baired. years – pushing implementation to November 2028. This would allow thriving hemp brands to continue operations and provide more time to establish proper regulations for the industry to avoid an outright ban.

“ The extension of the effective date from one year to three years provides much-needed stability and predictability for hemp brands and the broader supply chain,” says Michelle Bodian, general counsel and head of regulatory affairs at Nowadays.“ Establishing a durable federal framework is complex and requires coordination across agencies, scientific review and agricultural planning. This additional runway recognizes that reality and allows policy-makers the time necessary to develop consistent, practical standards. For businesses, retailers and consumers, it creates near-term certainty.”

DELAYING THE FEDERAL HEMP BAN

This new legislation is an effort to stop the funding bill that President Trump signed in November 2025 that aims to recriminalize most consumable hemp products, restrict the legal definition of hemp and impose a 0.4 milligram cap on total THC per container. It also expands the definition of THC to include delta−8, delta−10 and other isomers, along with any cannabinoids marketed as having similar effects.

After the funding bill was signed, businesses and advocates were quick to call for at least delaying its implementation. The law

Michelle Bodian, general counsel and head of regulatory affairs at Nowadays.

is currently set to become effective this November.

“ Planting and growing crops requires planning well in advance,” Baird said in a press release.“ Congress created a regulatory environment in the 2018 Farm Bill that allowed for certain investments, and farmers were operating within this environment. The hemp provision included in the Continuing Resolution and Appropriations bills passed in November 2025 disrupted planting decisions that had already been made.”

WHAT ARE THE NEXT STEPS?

According to Bodian, at this stage, the proposal needs to move through the standard congressional process, including passage by both chambers of Congress, before being signed into law.

“ As with many hemp-related measures, it may also be considered as part of a broader legislative vehicle,” she says.“ We are closely monitoring the process and continuing to engage constructively with lawmakers and regulators to support a clear, workable federal frame-work.”

“ This development reflects growing recognition in Washington that hemp-derived products require thoughtful regulation rather than abrupt prohibition,” Bodian adds.“ The extension creates space for collaboration between policymakers, regulators and responsible operators. We view this as an opportunity to help establish clear guardrails that protect consumers, support agricultural stakeholders and allow compliant businesses to continue con-tributing to economic growth.”

In late 2025, the Trump Administration officially directed the Attorney General to reclassify cannabis as a Schedule III substance. This marks a milestone for the industry, acknowledg-ing at last what medical professionals, patients and millions of Americans have understood for decades: cannabis has accepted medical use and does not belong alongside the most dangerous controlled substances.

The rescheduling allows state-licensed marijuana businesses to take federal tax deductions previously denied under IRS code 280E. It also removes certain research barriers and federally recognizes that marijuana has accepted medical use and lower abuse potential than Schedule I drugs.

The change is expected to influence states to modernize cannabis policies, as lawmakers in some states have cited restrictive federal classification as a barrier to reform. www. stateways. com Spring 2026 • StateWays 23