Marijuana And Alcohol Businesses Should Join The Hemp Industry In The Fight For Regulation Instead Of Prohibition (Op-Ed)

“We humbly ask our new friends in the alcohol and marijuana industries to join us. Reject misguided bans while embracing robust regulation.”

By Jonathan Miller, U.S. Hemp Roundtable

In recent months, leading organizations and companies in the alcohol and marijuana space have jumped into the hemp sector, offering their support for clear federal legalization and robust oversight of hemp products.

The U.S. Hemp Roundtable, the hemp industry’s national advocacy organization, welcomes them—but asks them to join us in a framework that rejects prohibition, embraces regulation, prevents access by minors and protects retail and e-commerce for all elements of the diverse hemp industry.

Since the 2018 Farm Bill federally legalized hemp, it’s been a rollercoaster ride. After a brief gold rush, the Food and Drug Administration’s (FDA) refusal to regulate CBD led to a crash in prices and widespread disruption. But with a hemp industry as resilient as its stalk, innovators pioneered direct-to-consumer (DTC) sales and developed a new market for adult health and wellness products–including a hemp beverage boom which now meets growing demand for non-alcoholic options.

Today, the hemp extract market has surged to $28.4 billion, creating 328,000 agriculture and retail jobs, with a $13.2 billion employment impact and $1.5 billion generated in state tax revenues. Its popularity is not surprising—hemp products are made in the USA, harvested from crops grown by American farmers, manufactured by innovative U.S. entrepreneurs and sold by small businesses dotting the nation.

Competing interests have taken note of hemp’s success. A few marijuana multi-state operators (MSOs) have led efforts at the state and federal level to ban hemp products, and/or seek monopoly control over distribution. But the majority of marijuana advocates support regulation, not prohibition. In fact, many cannabis companies have found new life via hemp. We’re excited to join an emerging new effort to bring the entire cannabis family together in a united policy-making venture.

More recently, the alcohol industry is weighing in as hemp beverages have gained space on shelves previously reserved for liquor. Leading organizations such as the Wine & Spirits Wholesalers of America and the American Beverage Licensees have called for Congress and state legislators to explicitly legalize and regulate hemp beverages, which in 2024 boasted $380 million in revenues.

But warning clouds loom. In some states, efforts to regulate beverages include bans on other types of hemp products, such as edibles or CBD tinctures fully 85 percent of the hemp product marketplace). In others, there is a rush to ban DTC sales—a lifeline to hundreds of thousands of adult consumers.

Texas has emerged as a key battleground. In response to Lt. Gov. Dan Patrick’s (R) crusade to criminalize all hemp products, HB 28 was introduced as a hemp beverage carveout. Unfortunately, that bill would ban nearly all non-beverage hemp products, criminalize DTC and dramatically reduce the number of retailers who can sell these products.

More regulation of hemp products is certainly needed. A lack of uniform quality control standards for hemp products at the federal level has forced responsible farmers and small business owners to compete against unscrupulous actors, who generate headlines by distributing poorly manufactured products that are sometimes inappropriately marketed to children.

To solve this problem, the U.S. Hemp Roundtable and dozens of hemp industry groups have united behind an appropriate response: robust regulation, not prohibition. We support an approach that ensures products are manufactured safely, marketed transparently and kept far out of the hands of children. We’ve even taken the additional step of establishing the U.S. Hemp Authority, the industry’s self-regulating organization, with rigorous standards for safety, quality and transparency.

At the federal level, we are hopeful that new leadership at FDA will reverse the past course of inaction and take deliberate steps to regulate hemp products. This approach is precisely in line with the new administration’s focus on providing adult consumers the freedom to make health care choices on behalf of their own families.

If laws must be changed, we urge Congress to act now. Sen. Ron Wyden’s (D-OR) effort in the last Congress, S. 5243, would require FDA to regulate hemp products. A parallel effort would invest more authority in the states to properly regulate their own markets.

We humbly ask our new friends in the alcohol and marijuana industries to join us. Reject misguided bans while embracing robust regulation. Preserve critical DTC channels, while ensuring aggressive steps are taken to protect against sales to minors. Treat all product forms equitably, allowing adult customers access to the products they prefer.

Hemp is a uniquely American success story. This is a plant that feeds, heals and sustains. Its cannabinoids offer wellness solutions for some of the most vulnerable members of our society. Its seeds are rich in protein and nutrients. Its fiber is transforming construction, textiles, packaging and plastic alternatives. Hemp’s contributions to health, sustainability and economic development are real and lasting.

We invite all stakeholders to work together toward common-sense, evidence-based regulation that protects consumers, prevents underage access and supports innovation.

Jonathan Miller is the general counsel of the U.S. Hemp Roundtable, the hemp industry’s national advocacy organization.

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