Navigating Hemp Vs. Cannabis Debate: One Agenda For All? US Cannabis Council's David Culver Weighs In

As part of Benzinga’s special issue, we aim to help readers understand the ongoing national debate around this question: What should be done about the intoxicating hemp industry? 

This issue has gained prominence as hemp-derived products, particularly intoxicating cannabinoids like Delta-8 and Delta-9 THC, challenge existing cannabis regulations. 

The US Cannabis Council (USCC) is a leading organization in the push for federal cannabis legalization. Representing a broad coalition of cannabis businesses, the USCC advocates for a safe, equitable and regulated industry. As part of the organization, David Culver, the council’s senior vice president of public affairs, plays a crucial role in shaping public policy and industry strategies. 

To delve into this matter, we spoke exclusively with Culver.

Culver’s insights into the hemp versus cannabis debate will no doubt help us better understand the future of an industry that has been growing steadily under the coverage of a legal grey area.

Let’s dive in.

The Hemp Industry vs.The Cannabis Industry

Hemp and cannabis are often confused, but they serve different purposes and markets. While cannabis is widely known for its psychoactive effects due to higher THC content, hemp has traditionally been used for non-intoxicating purposes such as producing textiles and creating CBD products. However, the emergence of intoxicating hemp-derived products has blurred these lines, creating a new industry with its own interests and dynamics.

For example, many California cannabis companies have been switching to hemp products due to the suffocating regulatory pressures and extra tax burden related to cannabis’s Schedule I classification. Additionally, major cannabis players like Curaleaf CURLF, which is a member of the USCC, recently launched a hemp store. Other mayor cannabis companies are evaluating whether or not to do the same.

USCC On Hemp Regulation

"We're talking about the same THC in these hemp-derived products as in medical and adult-use cannabis. It just makes sense to regulate them in a similar manner," Culver said.

The USCC proposes to do this by making changes to the Farm Bill, which addresses the regulatory gap between hemp and cannabis.

In an email shared in April 2024, the USCC suggested a new definition for hemp that would exclude products with detectable levels of THC intended for consumption. "Hemp-based intoxicating products should be regulated with safety and effect on individuals in mind," reads the statement. This proposal aims to clarify the legal distinctions between intoxicating and non-intoxicating hemp products, much like the difference between grape juice and wine in alcohol regulations.

But political issues for the farm bill have become complicated, and although it should have been discussed on 2023, even 2024 will not probably see any changes to the legislation. Culver concludes from this situation that “the conversation at the state level is really where the bulk of the action has been. And I think we’re going to see a significant amount of activity in the States on this topic in 2025.”

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Florida Battlefield: Ron De Santis’s Confusing Stand

Florida has become a battleground in the hemp vs. cannabis debate, with Governor Ron DeSantis and the GOP opposing cannabis legalization while allowing the sale of less-regulated hemp products. Recently, the governor received financial support from hemp manufacturers who are profiting from an unregulated environment.

"If you’re opposed to the adult-use market, which provides a heavily regulated system, why would you not want that for products with the same intoxicant?" asked Culver rhetorically.

This contradiction seems to be on everyone’s mind, even former president Donald Trump, who recently endorsed Florida’s cannabis legalization amendment, in a huge blow to De Santis.

While this interview took place before the Trump endorsement, Culver anticipated Trump’s move as adding promising perspectives for the cannabis industry in Florida. "This could be a pivotal moment in getting the ballot initiative over the 60% threshold."

He added that at a federal level, "It would set the stage for us to have two presidential candidates, both of whom have had their own separate journeys on cannabis reform."

Read Also: Why Are So Many California Cannabis Companies Switching To Hemp Products?

USCC Adds Hemp Industry Players

Although traditionally focused on cannabis, the USCC has recently been adding hemp manufacturers to the council’s lines.

"We have had several companies from the hemp space apply for membership recently," Culver shared. The council aims to collaborate with all stakeholders to find common ground as they prepare for potential changes to the Farm Bill in 2025.

This anticipates a possible shift in both the hemp and cannabis space in the coming years.

"We're making good progress and anticipate more states will reassess or tackle hemp regulations by then," he added. "We really want to make sure that USCC collaborates with all stakeholders to create a safe and fair regulatory system." And, he added, the USCC seeks to help create “the lowest common denominator that creates a safe and fair regulatory system.”

Read Also: Strategy Shift In The Works? Are Cannabis Giants Getting Into The Hemp Derived-THC Market?

Cannabis Rescheduling Delay May Not Be Such Bad News

Finally, the DEA’s recent decision to delay cannabis rescheduling until after the upcoming presidential election has sparked a curious reaction.

"My first reaction was one of disappointment because this is a significant delay," Culver said.

However, he later reflected, "Moving the hearing to December 2nd shows they're not using this politically."

Cannabis is a very sensitive topic. If rescheduling came before the election, it could spark doubts about the fundamentals of the decision. But other questions are raised now that the decision will be taken under a newly-elected administration.

"The big question in my mind is can they still issue the final rule before the end of the Biden administration?" Culver pondered.

“If it is a Harris administration, we would expect her to continue the process and to get to final rule at some point early in her first, term. If it’s a Trump administration, then the question becomes, what does he do, if anything?” said Culver. “And if it’s not the final rule before he takes office, if he wins, he could shelve this, rule indefinitely at the DEA, if that’s his wish. Or, of course, he could let it continue on and let the DEA decide to do as it chooses."

As Culver’s comments show…in the cannabis space there’s always room for a bit of speculation and much-needed flexibility.

• Read Next: Hemp-Derived Cannabinoids Vs. Legal Cannabis: What Industry Members Are Saying About This Not So Silent Battle

Cover: Benzinga edit of USCC Website Photo + Michael Fischer via Pexels