Yo, what’s going on everybody? What’s good? Welcome into our latest TDR Cannabis in Five presented by Duche, the tech powering cannabis commerce across North America. I am your host Shad Dales and today we’re going to talk about the Lone Star State, Texas. Here is the headline. The feds just dropped a new hemp ban, but Texas, they are not slowing down. Regulators there are still moving forward with their own hemp rules, and that tells us a lot about how states are navigating cannabis policy here at the end of 2025. As we say, let the states create their own rules. Let’s get into our latest TDR cannabis and five presented by Duchy. All right, first let’s set the stage. The federal government, as we know, they recently approved a ban targeting certain hemp products, mainly intoxicating canabonoids like Delta 8 and Delta 10. The idea is to close loopholes that allowed hemp derived products to mimic marijuana effects while skirting federal law. So, on paper, it’s a big move. Yes, we know that it signals Washington is tightening control over hemp even as broader cannabis reform stalls. For operators, it raises questions about compliance, enforcement, and what products can legally stay on shelves. But here’s the twist. Despite the federal ban, Texas officials are still pushing ahead with their own hemp regulations. So, they’re not hitting pause here. They’re not waiting for Washington either. They’re saying, “We’ve got our own framework, and guess what? We’re sticking to it.” So, according to Marijuana Moment, the Texas Department of State Health Services is finalizing rules around hemp manufacturing, testing, and labeling. So, a long story short, they’re focused on consumer safety, product transparency, and keeping the industry viable. So, while the feds are indeed clamping down, Texas is basically saying, “We’re going to regulate, not retreat.” So, this is big. It’s huge for a couple of reasons. Why? Well, one, state autonomy. Texas is showing that states can chart their own path even when federal policy shifts. Also, industry stability by moving forward with regulations. Texas gives hemp businesses clarity. They know the rules. They can plan and they can still invest. Then you also have consumer trust. Clear labeling and testing standards help legitimize hemp products even in a tough federal climate. From what we’ve heard, a lot of the bad actors, meaning the bad product, it was coming from oversupply states like Oregon and California that were flooding into the Texas market. So now for operators, this means Texas remains a market worth watching. The federal ban, it might scare some players, but state level rules, they will create a roadmap for survival. And the hemp industry is in survival mode now. So if we zoom out, and this is part of a bigger trend, cannabis and hemp policy in the US is increasingly a patchwork. You got the feds saying one thing and now in this case the states are saying another. We’ve seen this with marijuana legalization. Federal prohibition still exists. But then you got states like California, Colorado, and New York. They’ve built their own frameworks. Now hemp, they’re going to play the same playbook. And I can’t blame them at this point. So Texas is moving forward despite the ban. It shows that the states aren’t waiting for Washington to figure it out. So they’re going to protect their industries, their consumers, and more importantly, their tax revenue and all this. You can bet that’s an important angle for sure. So for investors and operators, here’s the play in all this. So short-term, expect some confusion here. The federal ban, it creates a lot of uncertainty and enforcement could be uneven. Medium-term, states like Texas will provide stability by setting clear rules. So that makes them safer bets for investment. And then longer term, the patchwork, it continues until Congress passes comprehensive reform. So until then, operators need to be nimble, adapting to both federal and state landscapes. So when you look at Texas, it’s basically saying, “We’re open for business, but we’re going to do it the responsible way.” So that means for many operators, that’s what they like to hear. Because let’s be real, this is all about optics. Texas is a conservative state, but it’s not ignoring hemp. By moving forward with regulations, officials are signaling they care about consumer safety and industry viability. At the same time, the federal ban, it gives them cover. they can say, “Look, we’re aligned with Washington on cracking down, but we’re also making sure our local industry, it doesn’t collapse as well.” So, when you look at that balance, tough on intoxicating hemp, supportive of regulated products, it’s politically smart in all this. So, it keeps both sides of the debate engaged. So, really, here’s the takeaway at all this. One, the federal government, they just ban certain hemp products nationwide. Two, Texas isn’t slowing down. They’re finalizing their own rules. And then three, for operators, that means clarity in Texas, even as federal uncertainty grows and it’s growing. So for businesses and investors, it’s proof that state level policy, it still drives the cannabis and hemp markets right now. Leave it to the states to decide. That’s what should be happening. Cuz at the end of the day, Texas is showing us that the hemp industry, it isn’t dead just yet. It’s evolving. And if you’re paying attention, that evolution could mean opportunity. But right now, it’s hard to focus on opportunity considering all this news that’s unfolded over the past 2 weeks. The hemp industry is in survival mode. But you can bet the state of Texas is not turning their back on a lot of farmers and operators involved in that state. It’s a big market down in Texas, and they’re not about to turn their back on a lot of tax revenue that’s generated from it. So, that’s our latest TDR Cannabis and Five presented by Dutch. Leave your comments below and what your views are on what Texas is doing, and should more states do this and adopt this approach. Again, let’s keep this conversation going. And as well, if you like this breakdown, make sure to give it a like, subscribe, and smash on that bell for all notifications and stay connected with us here at TDR. That’s it for now, everybody. I’ll see you in the next video. In the meantime, enjoy your day. I’ll see you next time here on TDR Cannabis and Five presented by Duchy. Thanks again for watching.
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