Inside the Law That Could Redefine Hemp in 2026

Today, we’re talking about a federal development that’s primed to reshape an entire industry: the booming market for hemp‑derived cannabinoids. If you’ve seen delta‑8 gummies at a gas station or THC seltzers in a mainstream grocery store, you’ve witnessed this explosion firsthand.

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• Navigating New Hemp Laws: A Major Shift for the Cannabis Industry

About the author

• Jennifer German 

Transcript

Welcome to Womble Perspectives, where we explore a wide range of topics, from the latest legal updates to industry trends to the business of law. Our team of lawyers, professionals and occasional outside guests will take you through the most pressing issues facing businesses today and provide practical and actionable advice to help you navigate the ever changing legal landscape.

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Host 1:
Welcome back to Womble Perspectives. Today, we’re talking about a federal development that’s primed to reshape an entire industry: the booming market for hemp‑derived cannabinoids. If you’ve seen delta‑8 gummies at a gas station or THC seltzers in a mainstream grocery store, you’ve witnessed this explosion firsthand.

Host 2:
But that market is on the verge of a massive reset. The Continuing Appropriations and Extensions Act of 2026 fundamentally rewrites the definition of lawful hemp starting November 12, 2026. And for companies in the space, 2026 is less of a countdown and more of a runway that requires immediate action.

Host 1:
Let’s start with what’s actually changing. The Continuing Appropriations and Extensions Act, signed by President Trump in late 2025, delivers a strict reinterpretation of what qualifies as hemp under federal law. Until now, compliance hinged almost entirely on one metric: delta‑9 THC levels. But under the new rules, it’s all about “total THC,” which is a calculation that includes delta‑9 and THCA, with THCA adjusted for decarboxylation.

Host 2:
And that shift comes with teeth. There’s a hard cap: no more than 0.4 milligrams of total THC per finished product container. Not per serving. Per container. That alone knocks out a huge share of today’s hemp-derived items. The law also reclassifies a broad suite of cannabinoids—delta‑8, delta‑10, HHC, THCA—placing them all within the same THC bucket for compliance.

Host 1:
Plus, any cannabinoid not naturally produced by the plant becomes off‑limits, along with cannabinoids that do occur naturally but are synthesized outside the plant. And within 90 days of enactment, the FDA must publish lists of naturally occurring cannabinoids, THC-class cannabinoids, and those with similar effects. Those lists will shape how manufacturers and labs measure and test compliance.

Host 2:
Reactions across the sector couldn’t be more polarized, and the hemp industry is sounding alarms. Many estimates say up to 95% of current products could be eliminated. Farmers, processors, and retailers warn of massive job losses and a shrunken, destabilized market—one that previously grew to roughly $28 billion thanks to consumer demand for hemp-derived THC products.

Host 1:
Even full‑spectrum CBD products, widely used by seniors, veterans, and people managing chronic conditions, may no longer meet the new standard. Industry leaders warn the changes could push consumers into unregulated or illicit channels, undermining safety goals rather than supporting them.

Host 2:
Meanwhile, regulated cannabis dispensaries and state-level cannabis authorities view the law as long overdue. From their perspective, hemp-derived intoxicants created an uneven playing field—sold in gas stations and liquor stores with minimal oversight and far lower compliance costs. So in their eyes, this is a necessary correction.

Host 1:
And both sides agree that the status quo couldn’t continue. There’s broad recognition that modernized rules like age gating, potency caps, consistent labeling, and tighter federal‑state coordination are essential going forward.

Host 2:
Even though the law doesn’t officially take effect until November 2026, the fallout has already started. Supply chains are tightening, formulations are shifting, and companies are re-evaluating product roadmaps. And critically, some states are moving ahead of the federal timeline, adopting elements of the Continuing Appropriations and Extensions Act sooner.

Host 1:
That means companies waiting for the federal deadline may already be out of step in key markets. This period is essentially a transitional regulatory environment. One where risk is increasing daily and strategic decisions can’t be postponed.

Host 2:
So what should businesses be doing right now? First, a comprehensive compliance audit. That means reviewing product lines, testing protocols, supply chains, and formulations against the new total‑THC standards and the restrictions on psychoactive cannabinoids.

Host 1:
Next, companies need a clear product evaluation and reformulation strategy. And urgency matters, because the law doesn’t offer a sell‑through grace period. Once the deadline hits, any non-compliant product still in commerce could be treated as illegal marijuana under federal law. That means forecasting inventory, documenting decisions, and avoiding what regulators might perceive as “inventory dumping.”

Host 2:
Contract review is another critical area. Agreements with farmers, processors, and distributors may need to be renegotiated to reflect federal changes. At the same time, businesses should engage in targeted advocacy, both federally and at the state level. The regulatory landscape is shifting quickly, and thoughtful, well-aligned advocacy can influence how the law is interpreted and enforced.

Host 1:
And finally: diversify. Companies leaning into non‑psychoactive hemp products or industrial hemp applications will need guidance on product classification, claims, and regulatory pathways. Innovation remains possible—but only with careful planning.

Host 2:
All signs point to a highly dynamic legal environment over the next year. Interpretations will evolve. States will diverge. And companies that wait for perfect clarity could find themselves overwhelmed by deadlines and operational risks.

Host 1:
A federal reset is coming, and preparation can’t wait. Businesses that stay proactive—auditing products, refining strategy, engaging regulators, and planning for reformulation—will be the ones best positioned to navigate the transition.

Thank you for listening to Womble Perspectives. If you want to learn more about the topics discussed in this episode, please visit The Show Notes, where you can find links to related resources mentioned today. The Show Notes also have more information about our attorneys who provided today's insights, including ways to reach out to them.

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