Delta-8 THC Regulation Raises Public Safety Concerns And Industry Challenges

As Delta-8 THC continues to gain popularity, the debate over its regulation is intensifying, with both the alcohol and cannabis industries watching closely.

Anthony Coniglio, CEO of NewLake Capital Partners and upcoming Benzinga Cannabis Capital Conference speaker, weighed in on the implications of this ongoing discussion, emphasizing the need for clear regulations to address the public safety risks posed by unregulated cannabis products. Coniglio's perspective offers valuable insight into how these regulations could reshape the market.

Public Safety and Legislative Uncertainty

Coniglio pointed out that the unregulated nature of delta-8 THC presents a public safety issue that Congress must address. “Unregulated cannabis products are an issue of public safety,” he said, stressing the importance of legislative action to control these products. The alcohol industry, which is seeing cannabis displace traditional beverages, is also paying close attention to how regulations will evolve.

As states like New Jersey tighten their regulations on delta-8 THC, the relationship between the alcohol and cannabis industries could shift significantly. Coniglio expects that once the rules are established, both industries will actively compete for market share. “Once the rules are set, I believe both industries will vigorously pursue market share,” he added, highlighting the competitive dynamics.

Industry Caution and Market Impact

The uncertainty surrounding delta-8 THC regulation is causing companies to approach the market cautiously. Coniglio noted that mature businesses are wary of investing in a segment that could be legislated out of existence. “No one wants to spend a lot of time and capital entering a consumer segment legislated out of existence,” he explained. This cautious approach reflects the broader concerns within the hemp and cannabis industries, particularly as the divide between state and federal laws continues to grow.

Coniglio also pointed out that the increasing restrictions on Delta-8 THC could exacerbate the already complex regulatory environment for cannabis businesses. “It also creates another divide between state and federal law, just in the opposite direction of the state-legal cannabis industry,” he said. This growing disconnect adds another layer of uncertainty for companies navigating the regulatory landscape.

Want To Learn More?

The ongoing debate over Delta-8 THC regulation and its impact on the cannabis and alcohol industries will be a crucial topic of discussion at the upcoming Benzinga Cannabis Capital Conference, scheduled for October 8-9 in Chicago. With over 2,000 participants attending the spring edition, this event promises to be an essential forum for industry leaders like Coniglio to share their perspectives.

Attendees at the conference will be able to engage with experts on the front lines of these regulatory challenges, gaining valuable insights into how businesses can navigate the evolving landscape. As the cannabis industry faces these regulatory hurdles, the conference will provide a platform for critical discussions on the market’s future.

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