Hemp was federally legalised as an agricultural crop through the 2018 Farm Bill, which removed it from the federal definition of marijuana. Under the law, hemp is defined as Cannabis sativa L. containing no more than 0.3% delta 9 THC by dry weight. The change opened the door for American farmers to grow hemp legally and helped create a rapidly expanding market for products including CBD, hemp food, textiles, building materials and cannabinoid products.
However, the wording of the 2018 law also created an unexpected problem for regulators. Companies began producing intoxicating cannabinoids from hemp, including delta 8 THC and other THC products. Because some of these products could be manufactured from legally grown hemp while remaining within the federal definition, they became available in parts of the country where traditional cannabis remained illegal.
Now, the federal government is moving to close that gap.
A major change to the federal definition of hemp is scheduled to take effect in November 2026. Instead of relying on the existing approach, the new rules will use a much stricter definition that takes into account total THC and certain cannabinoids. The changes could remove many intoxicating hemp derived products from the legal hemp category.
This could have a major impact on products such as THC gummies, drinks, vapes and other cannabinoid products that have become increasingly common across the US.
Importantly, this does not mean that hemp itself is being banned. Industrial hemp grown for fibre, grain, seed and other traditional uses remains a legal agricultural crop under federal law, provided producers follow the relevant licensing, testing and production requirements. The USDA continues to regulate the cultivation of hemp through its Domestic Hemp Production Program.
The biggest uncertainty is around what can be made from hemp once it leaves the farm.
The USDA regulates hemp production, but products made from hemp can fall under other federal and state regulations. The USDA itself notes that the FDA and state and local governments can impose additional requirements on hemp products, particularly products intended for human or animal consumption.
This has created a complicated legal landscape where the same type of hemp derived product can be treated very differently depending on the state in which it is sold.
Some states have introduced restrictions on intoxicating hemp products, while others have moved towards regulated markets with requirements around testing, labelling, age restrictions and THC limits. As a result, businesses operating in the hemp industry increasingly have to navigate both federal rules and a patchwork of individual state laws.
The coming months could therefore be extremely important for the American hemp industry.
The key point is that the US is not simply making hemp illegal. Instead, federal lawmakers are attempting to draw a much clearer line between traditional industrial hemp and intoxicating cannabinoid products made from hemp.
For farmers growing hemp for fibre, grain or seed, the changes could look very different from those faced by companies selling THC and cannabinoid products.
After the 2018 Farm Bill helped bring hemp back into mainstream American agriculture, the industry now finds itself at another major turning point. What happens next could determine whether the US hemp market continues to expand, becomes more tightly regulated, or sees a significant portion of its cannabinoid industry disappear.
With the new federal rules approaching in November 2026, the debate over what hemp should legally mean in America is far from over.
