LOS ANGELES — Congress federally legalized hemp-derived products but failed to establish a proper regulatory framework. With a flood of hemp-infused products now on the market, several states are moving to ban or restrictively regulate them. A new Reason Foundation policy report outlines how to protect consumers, establish safety standards and develop a healthy legal market for hemp products.
“State regulations governing hemp products vary widely and are unevenly enforced, creating a patchwork of rules that can change dramatically from one state to the next,” write Reason Foundation’s Geoffrey Lawrence and Michelle Minton. “This piecemeal approach leaves consumers at risk, strains state resources, and hampers the ability for even willing actors to comply with state rules.”
The new report, “A Framework for Federal and State Hemp-Derived Cannabinoid Regulation,” includes a series of recommendations for federal and state authorities to harmonize standards for testing, labeling, packaging, and taxation of all cannabis products. By implementing these measures, the authors detail how states can enhance compliance and market competitiveness, reduce costs, and ensure consumer safety as the legal marijuana and hemp markets evolve.
Hemp and cannabis are biologically the same plant; however, hemp is defined by the 2018 Farm Bill as a plant containing less than 0.3 percent tetrahydrocannabinol (THC). Unlike marijuana, which for now remains a Schedule I controlled substance under federal law, hemp-derived cannabinoids, such as cannabidiol (CBD) and delta-8 THC, occupy a murkier legal and regulatory landscape.
The growing popularity of hemp-derived products has stimulated significant legislative attention in recent years, with over 90 regulatory proposals introduced in state legislatures in 2024. Reason Foundation finds Colorado, Delaware, Hawaii, Idaho, Iowa, Mississippi, Montana, Nevada, New York, North Dakota, Rhode Island, South Dakota, Utah, Virginia and Washington are among the states that have taken steps to prohibit hemp-derived cannabis products.
A diverse set of states, from California to Texas, are currently considering restrictions. California Gov. Gavin Newsom recently proposed emergency regulations that would ban THC from any consumable product. Texas Lt. Gov. Dan Patrick has called for legislators to consider “banning Delta 8 and 9.” And New Jersey Gov. Phil Murphy just signed a law temporarily banning the sale of hemp products by those without a cannabis license.
“Interestingly, states that legalized marijuana for medical or adult use have been more inclined to ban or severely restrict the sale of hemp-derived cannabinoid products, while those states that continue to prohibit marijuana have been more reluctant to enact restrictions on hemp-derived cannabinoids,” the Reason Foundation report finds.
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Reason Foundation is a nonprofit think tank dedicated to advancing free minds and free markets. Reason Foundation produces public policy research on various issues and publishes the critically acclaimed Reason magazine and its website.
