Is 'Gas Station Weed' On Its Way Out? U.S. Cannabis Council Proposes Regulation Of Delta-8, Texas Wants Prohibition

The U.S. Cannabis Council penned a letter to the Senate and House Agriculture Committee urging it to address the “national crisis caused by unregulated intoxicating hemp products.” This issue, once again under the spotlight, transcends the simplistic framework of a debate between regulators and prohibitionists.

The fact is that the U.S. Cannabis Council represents a concerted effort to lobby on behalf of the regulated cannabis industry. They are now pushing to regulate Delta-8 and Delta-9 THC—compounds derived from hemp— as marijuana, putting an end to the “grey market.” The main argument centers around the absence of testing and targeted marketing towards minors.

“Absent federal product safety oversight, hemp legalization has led to a national consumer market filled with untested and unregulated intoxicating products. This has culminated in the widespread distribution of unsafe consumer products, often produced using unregulated industrial-scale chemical processes that fall short of the basic product safety standards expected by American consumers,” the Council stated. “Moreover, the ease of purchasing these products online, at gas stations, and in convenience stores—without any age restrictions or labeling requirements—gives consumers a false sense of security regarding the safety and legality of these products.”

The Council argues the regulatory oversight should end, suggesting, “Like other consumer products, hemp-based intoxicating products should be regulated with an emphasis on safety and the impact on individuals.”

The proposed amendments to the Farm Bill seek to classify all products made or derived from hemp or hemp by-products that contain detectable amounts of total THC and any other intoxicant that can be derived from hemp, including other forms of THC, intended for consumption or absorption inside the body, as marijuana.

This reclassification would allow the FDA to oversee non-intoxicating hemp consumer products, while simultaneously removing cannabis from unregulated markets. This action also aims to close the loophole that has facilitated the growth of an industry centered around derivative compounds and would imply a major shift in market conditions of manufacturers of Delta-8 and Delta-9 hemp-derived THC.

Texas Pushing For The Ban?

While the Delta-8 compound was recently banned in South Dakota, the issue has garnered attention from Texas Lieutenant Governor Dan Patrick (R) who included the examination of a full prohibition of Delta 8 and 9 THC products in his Interim Legislative Charges.

This development is particularly notable in Texas, a state with stringent prohibitions against adult use and a complex bureaucracy for accessing medical cannabis.

Texas is also a major consumer of so-called “Gas Station Weed,” as Delta-8 exists in a legal grey zone with no explicit laws banning or legalizing its use. Despite its judicialization in 2021 access to Delta-8 and Delta-9 products is currently guaranteed pending a decision pending a decision on whether the Texas Department of State Health Services acted within the law in its January 2021 ruling that Delta 8 THC was to remain an illegal substance. Since then, the ban on Delta-8 in Texas has been paused.

This issue will surely be on the agenda at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16-17. The two-day event at The Diplomat Beach Resort is a chance for entrepreneurs, both large and small, to network, learn, and grow. Get your tickets now on bzcannabis.com – Prices will increase very soon! 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.