Synthetic Cannabinoids Could Be Federally Banned Under New Senate Bill To Regulate Hemp-Derived Products

Benzinga · 09/27 15:16

Senator Ron Wyden (D-OR) introduced the Cannabinoid Safety and Regulation Act (CSRA) on Wednesday, aiming to establish a federal framework for regulating hemp-derived cannabinoids like CBD and Delta-8 THC. The legislation seeks to protect public health by setting national standards on age restrictions, safety testing and labeling for hemp products.

FDA To Oversee Hemp Product Safety And Access

Wyden’s CSRA proposes a national age limit of 21 for purchasing hemp-derived cannabinoid products and mandates that all such products undergo safety and manufacturing testing to ensure clean processes. The bill empowers the Food and Drug Administration (FDA) to recall or ban cannabis products containing dangerous chemicals or additives, ensuring truth in labeling.

“Just like the tobacco industry marketing cigarettes to young people, nobody should be slapping fun cartoons and glitzy candy wrapper packaging on cannabis products meant for adults,” Wyden stated in a press release. “A federal floor for regulation of hemp products is non-negotiable to ensure that consumers aren't put at risk by untested products of unknown origin. My legislation will ensure that adult consumers know what they're getting, and that hemp products are never sold or marketed to children.”

Synthetic Cannabinoids Would Face Federal Ban

The legislation allows states to impose their own regulations on hemp-derived products beyond the bill’s provisions. It also bans “artificially or synthetically derived cannabinoids and semi-synthetic cannabinoids,” defined as those produced through chemical synthesis, modification or conversion. The bill would prohibit adding cannabinoids to products containing alcohol, tobacco, nicotine or other substances that could interact with or enhance cannabinoid effects.

Synthetically derived cannabinoids like Delta-8 THC would also be federally banned. This means products containing Delta-8 THC synthesized from legal CBD would become illegal, significantly impacting their availability in state markets where they’re now being sold.

Further, the bill would establish a new FDA department, the Center for Cannabinoid Products, which would enforce bans on synthetically derived cannabinoids and regulate dosages in hemp products.

Industry Groups Back Wyden’s Hemp Bill

Co-sponsored by Senator Jeff Merkley (D-OR), the CSRA has garnered support from key industry groups, including the U.S. Hemp Roundtable and the National Cannabis Industry Association.

“The hemp industry is united behind a simple, common-sense proposition: Hemp products should be robustly regulated, not the subject of a misguided prohibition,” said Jonathan Miller, general counsel at the U.S. Hemp Roundtable.

Read Also: Expert Calls For A United Hemp And Cannabis Front, ‘Industries Should Collaborate’ And Push For Federal Rules

Clifford Starke, chairman and CEO of Flora Growth Corp. (NASDAQ:FLGC), expressed his support for the bill. “The introduction of the Cannabinoid Safety and Regulation Act represents a pivotal step forward for the cannabis and hemp industries. By establishing clear regulatory standards, this bill will not only protect public health and safety but also create a robust legal pathway for companies like Flora to deliver safe, high-quality cannabinoid products to adults. Importantly, it ensures that these products are rigorously tested, properly labeled, and age-restricted,” Starke stated in a press release.

Wyden’s proposal emerges amid growing state-level actions to regulate or ban synthetic hemp products. The bill aims to address regulatory gaps that have existed since the 2018 Farm Bill, which legalized hemp production but inadvertently opened the market to unregulated, psychoactive hemp-derived products like delta-9 THC edibles and beverages.

Congressional Delays, Potential Backlash

While the CSRA seeks to balance consumer safety with industry growth, its passage remains uncertain due to legislative gridlock in Congress, notes MJBizDaily. With challenges in advancing basic funding bills, more complex legislation like the CSRA may face delays.

Furthermore, the bill could spark controversy akin to recent events in Missouri and California, where regulatory actions on hemp-derived products faced legal challenges and industry backlash. Critics argue that such measures might inadvertently harm patients dependent on hemp-derived CBD treatments and negatively impact the hemp industry, suggesting Wyden’s proposal may encounter similar opposition.

Impact On Hemp Investments

For investors, the introduction of the CSRA signals potential market shifts in the hemp and cannabis industries. Increased regulation could impact companies producing hemp-derived products, affecting profitability and investment opportunities.

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