The legal landscape of the cannabis industry has been a topic of discussion for year’s recent legalization of recreational use in others; many have turned their attention to cannabidiol (CBD), commonly referred to as hemp or cannabis-derived CBD.
CBD is a non-intoxicating compound found in cannabis plants that is often used for medicinal purposes. It has become increasingly popular due to its potential health benefits, such as reducing anxiety and inflammation, without the psychoactive effects associated with THC.
However, navigating the legal landscape of CBD be challenging. With regulations and policies varying by state and federal law, it’s important to understand the guidelines surrounding this versatile compound. At the federal level, CBD derived from industrial hemp was legalized under the 2018 Farm Bill. This bill removed hemp from the list of controlled substances and defined it as any part of the plant containing less than 0.3% THC by dry weight.
While this may seem straightforward, there are still hurdles when it comes to Carolina Hemp Cabinet regulation at the state level. Some states have completely legalized all forms of cannabis, including CBD products with higher levels of THC. Only legalized medical marijuana and restrict access to specific conditions or illnesses.
- Even within states that have legalized CBD use, there may be variations in products sold or marketed. For example, some states require specific labelling requirements or prohibit certain claims about health benefits without FDA approval for consumers to do their research before purchasing any CBD products to ensure they comply with both federal and state regulations.
- Regulatory challenges at both federal and levels, and there are also concerns about quality control in the industry. Due limited oversight by governmental agencies like the FDA, many companies selling CBD products may not adhere to strict quality control standards. To combat this issue some organizations like. Hemp Authority has developed certification programs for businesses that meet certain criteria for testing and labelling their products accurately.
Consumers should look for these certifications when purchasing any CBD products to ensure they are getting a high-quality product that meets safety standards. The challenge facing those operating in the cannabis industry is banking regulations. Because cannabis remains illegal under federal law traditional banks refuse to work with businesses operating in this space.
This makes it difficult for companies producing or selling CBD products to access basic financial services like loans or credit card processing. Some businesses turn to alternative banking options like credit unions or online payment processors specifically designed for cannabis-related businesses.