Hey everyone, Chad Dales here and welcome in to our latest TDR cannabis advice presented by Duchy. And oh, what a week it’s been. A lot of reporting we’ve been having on this whole hemp ban and now we’ve got a lot more information here to share today. So, in case you missed it earlier this week, there’s a proposed move in Congress to ban hemp derived products containing any, and I mean any, THC. So, at our latest story, this was first reported by Marijuana Moment, and it’s triggered an intense backlash from industry lawyers who call the plan over broad and disastrous. Why? Well, they’re warning that Congress could unintentionally wipe out an entire sector of legitimate hemp businesses, all because of a few bad actors. A few. I think there’s more than that. So, let’s unpack what’s actually happening here, why it matters, and what I think it signals for the next phase of US cannabis reform, because that’s the most important thing if you think about it. So, let’s get into our latest TDR cannabis at 5 presented by Duchy. Let’s begin. Congress is considering new language buried into a Senate appropriations bill that would ban all hemp products containing detectable levels of THC. So again, that means any beverage, gummy, tincture, or edible made from federally legal hemp, and it could instantly become illegal, even if it meets every state safety requirement and contains less than.3% THC. So industry lawyers representing more than a dozen hemp companies sent a letter to congressional leaders, and they weren’t screwing around. They condemned the proposal. They argue it’s not targeted regulation. It’s a blanket prohibition that would punish responsible actors and devastate small businesses. So, I can see where they’re coming from. Their point is simple. States like Minnesota, Tennessee, and Kentucky already have hemp frameworks. They’re collecting taxes. They’re tracking sales, and they’re setting safety standards. So, a federal ban would override all that progress overnight. So, next up, what are the attorneys say is wrong with this entire plan right now? Well, first they claim that state attorneys general pushing this ban misrepresented how hemp is actually regulated. Many states do have working systems. They just need more consistent enforcement and not a complete shutdown. Then number two, they warn the new definition of THC product is so broad that it would capture non- intoxicating CBD products too since trace THC occurs naturally in hemp extracts. Third, they compare to the alcohol industry. States regulate beer, wine, and spirits differently, but the federal government didn’t respond by banning alcohol outright. It built a shared framework. They’re asking Congress to take the same approach to hemp. And then fourth, they emphasize the business impact. Major consumer goods companies, hemp farmers, beverage makers, even multinationals experimenting with hemp derived wellness products would all be forced to pull items off shelves. So the group says if this goal is to stop youth access and unregulated sales, there are better tools such as age restrictions, marketing limits, and product testing, not prohibition through a backdoor budget bill. So again, I see their point, but you could see this coming. So this debate cuts to the heart of what the cannabis and hemp sectors have been arguing for years, regulation versus eradication. So, if the Senate includes this hemp banan in its final budget package, tens of thousands of jobs could be at risk and consumers would lose access to products they can currently buy legally in dozens of states. But there’s a lot of product that is being sold legally. We all know it shouldn’t be. It would also set a major precedent for sure. Using a spending bill to reshape drug policy without public hearings or scientific review, that’s something to think about. So from an investor and policy perspective, it would push more consumers back towards illicit or gray market products. So this is the very opposite of what lawmakers say they want in all this. Again, this is what they’re saying. So who’s behind all this? Well, on Capitol Hill, this has become a high stakes tugofwar. As I’ve reported earlier this week, Senator Mitch McConnell, who actually championed hemp legalization in the 2018 farm bill, is reportedly supportive of tighter controls. In addition to McConnell, there’s Representative Andy Harris and others who have echoed concerns about unregulated and intoxicating hemp beverages showing up in convenience stores and other places like gas stations, too. But then on the other side, you have lawmakers like Senator Ran Paul and they’re warning that a total ban would indeed destroy an entire industry and punish compliance. Paul has hinted that this could block major spending legislation if the language then indeed stays in. Also, because this provision is inside a must passed appropriations package, not a standalone bill, the outcome could hinge on behind the scenes negotiations rather than an open debate. So, that is something that we have to be mindful as well. Also, something to be mindful of is our TDR Cannabis and 5 is presented by Duche, the all-in-one technology platform that powers cannabis retailers with compliant e-commerce, point of sale, and payments. From checkout to delivery, Duche connects the legal cannabis experience safely and simply. Again, if you want to learn more, visit business.duty.com. So, as we look at this further, here’s what could happen next. First up, we got to look at whether the Senate strips out or keeps the hemp THC language in the final spending bill. That’s the obvious. Number two, how quickly state regulators and trade groups respond. You can definitely expect heavy lobbying here in the next few weeks. Third is whether Congress eventually introduces a separate hemp reform bill that focuses, let’s say, on regulation, labeling, and potency caps instead of an outright ban. And then number four, if this triggers new litigation from hemp companies arguing that such a ban violates the spirit of the 2018 Farm Bill or existing state commerce protections. So really, however this shakes out, this will influence the tone of cannabis policy going into 2026, especially if rescheduling moves forward and the federal government starts drawing new lines between hemp, CBD, and marijuana. All that stuff needs to have clarification. So, as we wrap all this up, here’s my takeaways, and here’s really where I stand on all this. So, number one, Congress is trying to fix a legitimate problem. There are bad actors selling intoxicating hemp products in gas stations and smoke shops with zero oversight. So, as far as Congress putting up with this anymore, those days are done. Number two, this shows really how fractured the US cannabis landscape really is. You’ve got legal dispensaries following state regulations on one side and a hemp market operating under a completely different rule book on the other. The federal government is now trying to slam those two worlds together. And it’s getting messy, real messy right now. But if this ban goes through, maybe not so much. And then number three, if you’re a serious investor or operator, this is a signal that federal oversight is indeed coming. So whether it’s through the FDA, USDA, or new legislation, Washington can’t ignore this sector forever. The smart players are already preparing for compliance, they’re not fighting it. And then finally, number four, this is a defining test for the hemp industry’s credibility. If the leaders can indeed rally around responsible standards such as testing, labeling, children resistant packaging, they can shape their own future. And if not, well, let’s face it, Congress will do it for them. But outside all this, this news was inevitable. You can’t operate a sustained business in a gray market. You want to clean up this mess and have more transparency, then in some cases, I know some people may not like it, you got to drop the hammer down. But if this ban does indeed go through, then it only points to the signs that cannabis rescheduling is only going to grow even stronger. Whether that happens remains to be seen, but we’ll see what happens next. That’s our latest TDR cannabis in 5. What do you all think? Is this the right approach the lawyers are making? Leave your comments below. We’d love to get your feedback. Are you all for banning and hemp entirely or do you think this is an overreach? Again, love to get your feedback. So, leave your comments below. And as usual, make sure to like, subscribe, and smash on that bell for all notifications to get all the latest information regarding the business and reform side of the cannabis industry. That’s it for now, everyone. I’ll see you in the next video. And like I always say, stay open-minded, stay connected, and I’ll see you next time. Thanks again, everybody, for watching.
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Video Duration: 00:07:59
