How Washington's Next Move Could Reshape the Cannabinoid Supplement Industry

Before the end of the year, a new federal definition of hemp is set to take effect, leaving the industry at a crossroads. In late 2025, the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 was signed into law with a one-year implementation date, making November 12, 2026, the date hemp products will be capped at 0.3% total tetrahydrocannabinols or 0.4 mg total THC per container.¹ THC, or tetrahydrocannabinol, is the psychoactive cannabinoid in the cannabis plant.

As the deadline looms, a short reprieve may be on the horizon. On August 8, 2026, the Senate voted to pass a continuing resolution for government operations funding, leaving an extension on the hemp restriction intact and, should the resolution be also passed by the House, the new date for the hemp cap would become December 11, 2026.²

As developments like these continue, the industry remains focused on the impending changes to hemp. According to Jonathan Miller, General Counsel for The US Hemp Roundtable, “the 0.4 limit would ban 95% of products currently on the market.” He notes that the most states are currently in a holding pattern, waiting for final action from Congress. As the situation continues to develop, actions from lawmakers and the White House are adding to the ongoing pressure and relief for the industry as it navigates the legality of hemp products.

What is the Legislative Landscape?

The Agriculture Improvement Act of 2018, also called the 2018 Farm Bill, created a distinction between marijuana and hemp, enabling the legal cultivation and sale of hemp-derived products and creating a sizable market.³ However, its definition of hemp, (“the plant Cannabis sativa L. and any part of that plant… with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis,”) unintentionally left a loophole for the proliferation of intoxicating hemp products, which subsequent legislation has aimed at closing. As Alleh Lindquist, Director and CEO of FloraWorks notes, while that objective is understandable, there are still challenges that could be posed to the industry. “If interpreted too broadly, that language could call into question standard hemp-processing methods such as extraction, purification, THC remediation, distillation, and decarboxylation,” he explains. New legislation could end up targeting parts of hemp crucial to the industry.

However, recent action from the White House has signaled a posture shift on hemp and cannabis research for medical purposes. Executive Order 14370, titled Increasing Medical Marijuana and Cannabidiol Research and signed in December 2025, called for an “update the statutory definition of final hemp-derived cannabinoid products to allow Americans to benefit from access to appropriate full-spectrum CBD products while preserving the Congress's intent to restrict the sale of products that pose serious health risks.”⁴ The Secretary of Health and Human Services, the Commissioner of Food and Drugs, the Administrator of the Centers for Medicare and Medicaid Services, and the Director of the National Institutes of Health were called upon to improve Americans’ access to hemp-derived cannabinoid products through the creation of research models using real-world evidence.

Other recent actions offer potential relief for the industry from restrictive framework in the recent Farm Bill. In June 2026, the Administration requested revisions to “the Federal regulation of hemp to ensure the fair treatment of hemp products in a manner consistent with Amendment #54 offered to H.R. 8646 in the House Rules Committee, or, at minimum, an extension of implementation of the regulatory framework put in place by Section 781 of Public Law 119-37.”⁵ In late July, Representatives Andy Barr and Angie Craig introduced the Lawful Hemp Protection Act, which aims to establish a federal regulatory framework for hemp-derived products, while supporting the industry long-term.⁶

“As the new rules are implemented, I think the most important thing is to distinguish between intoxicating THC products and naturally occurring, non-intoxicating cannabinoids,” Lindquist suggests. “Essentially, follow the known intent of the rules until we get more clarity.”

Two Industry Vantage Points

From an industry perspective, the caps on THC could indirectly affect cannabinoid businesses as they continue to produce products derived from hemp. FloraWorks manufactures a purified cannabinol (CBN) called TruCBN using a proprietary process. CBN, Lindquist explains, is non-intoxicating and occurs naturally in hemp, and the process is viewed as part of the continuum of controlled processes in the industry, such as THC-remediation in CBD oil. While the 0.4 mg cap on THC is essentially immaterial to the company because it sells purified cannabinoid ingredients and not products with quantifiable THC, it could affect brands of other products. “This provision is not material to our business, but it will have a significant impact across the broader hemp industry, including full-spectrum ingredients and products, as well as higher-THC hemp products intended for intoxication,” Lindquist notes. With TruCBN, FloraWorks is pursuing a New Dietary Ingredient Notification (NDIN) with the Food and Drug Administration, which it is still on track to submit later this year, he says. “Our core GLP toxicology work was recently peer reviewed and published, and our Self-Affirmed GRAS determination is now undergoing independent expert panel review,” he adds.

He also highlights how the Executive Order aligns with the company’s mission of increasing safety and efficiency data for cannabinoids. “We believe real-world evidence can help bring plant-based medicines into more formal healthcare settings, especially where large, randomized trials are still limited,” Lindquist states. The company is currently conducting an observational sleep study with TruCBN.

Managing the emerging state-by-state patchwork of hemp legislation has become a core part of business as well. While some restrictions, including THC caps and age-restrictions, mainly affect finished products, the operational burden lies in other areas. “The bigger challenge is navigating inconsistent testing, documentation, licensing, and quality standards,” Lindquist explains. “In some states, we must hold specific licenses, maintain a local presence, or work through in-state partners.”

Highlighting a unique reimbursement pathway for hemp products, the company positions its TruCBN as available for healthcare organizations assessing hemp products for the recently launched Centers for Medicare & Medicaid Services (CMS) Substance Access Beneficiary Engagement Incentive (BEI).^7,8 Lindquist notes that though the program is very new, state-specific legislation is not expected to be a barrier. “We are still completing a full state-by-state legal review, but TruCBN should generally be eligible in states that allow hemp-derived CBD and other non-intoxicating cannabinoids,” he stated.

From a trade association perspective, Miller outlines the US Hemp Roundtable’s vision for realistic hemp legislation. “Our ultimate goal is to pass a regulatory framework that bans product sales to kids, ensures good manufacturing practices, prohibits Chinese synthetic products, mandates truthful labeling, and establishes reasonable milligram limits,” he states. Miller also highlights that while about a dozen states have severe limitations on hemp products, with states such as Ohio and Illinois becoming recent additions to the list since November, most are still ultimately waiting on action from Congress. The organization is hoping for a consistent federal framework, he adds, but one that allows issues such as milligram limits to be left to the states.

What Are the Takeaways for Brands?

As the legislation and policy continue to conflate and develop in the countdown to the November deadline, few things remain certain. The prolonged ambiguity, state patchworks, and compliance challenges remain stressors for brands navigating the transitions.

In the midst of the ongoing changes, Miller adopts a steady outlook on the coming months. “We are cautiously optimistic that we will have a hemp fix by November, especially since the President has weighed so strongly in our favor, he states. “Whatever happens, we will not give up the fight.”

Lindquist offers practical actions for brands. “We do not expect an immediate disruption to our supply chain on November 12,” he states. “We are continuing to monitor implementation closely and are advising customers to stay informed, review their product portfolios, and avoid making unnecessary changes before there is clearer guidance on how the new definitions will be applied.”

References

1. Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026, HR 5371, 119th Cong (2025). Congress.gov. Accessed July 29, 2026. https://www.congress.gov/bill/119th-congress/house-bill/5371/text
2. US Hemp Roundtable. 61-32 Victory for Hemp: Congress Preserves Hemp Extension in Continuing Resolution. August 8, 2026. Accessed August 13, 2026. https://hempsupporter.com/news/61-32-victory-for-hemp-congress-preserves-hemp-extension-in-continuing-resolution/
3. McEvoy E. In the weeds: An update on the hemp regulatory landscape. October 14, 2024. Accessed July 29, 2026. https://www.nutritionaloutlook.com/view/in-the-weeds-an-update-on-the-hemp-regulatory-landscape
4. Executive Order 14370: Increasing Medical Marijuana and Cannabidiol Research. Fed Regist. 2025;90:60541-60543. Accessed July 29, 2026. https://www.federalregister.gov/documents/2025/12/23/2025-23846/increasing-medical-marijuana-and-cannabidiol-research
5. Vought RT. Letter to the Honorable Mike Johnson, Speaker of the House of Representatives. Executive Office of the President, Office of Management and Budget; June 24, 2026. Accessed July 29, 2026. https://www.whitehouse.gov/wp-content/uploads/2026/06/2026.06.24-Letter-to-the-Honorable-Mike-Johnson.pdf
6. Office of Congressman Andy Barr. Barr introduces Lawful Hemp Protection Act to protect Kentucky farmers, consumers, and the future of the hemp industry. Published July 22, 2026. Accessed July 29, 2026. https://barr.house.gov/2026/7/barr-introduces-lawful-hemp-protection-act-to-protect-kentucky-farmers-consumers-and-the-future-of-the-hemp-industry
7. FloraWorks. Medicare's New Hemp Program Is Live. Accessed July 29, 2026. https://flora-works.com/cms-substance-access-bei-program-trucbn-for-acos
8. Centers for Medicare & Medicaid Services. Substance Access Beneficiary Engagement Incentive. Updated March 20, 2026. Accessed July 29, 2026. https://www.cms.gov/priorities/innovation/substance-access-beneficiary-engagement-incentive