Rep. Beth Van Duyne (R-TX) is circulating draft legislation that would exempt hemp-derived THC beverages from the Drug Enforcement Administration's upcoming ban on intoxicating hemp products, according to documents obtained by industry sources.
The Hemp-Derived Beverage Regulatory Clarity Act would create a specific federal allowance for drinks containing hemp-derived cannabinoids, even as the DEA moves forward with regulations that would effectively recriminalize most other intoxicating hemp products starting later this year. Van Duyne's office has begun sharing the draft with colleagues and stakeholders for feedback.
The bill comes as the hemp beverage industry faces an existential threat. The DEA's interim final rule, published in January, sets a 0.3% THC limit for all hemp products, measured by weight. That standard works for hemp flower and extracts but functionally bans beverages, which are mostly water and therefore can't meet the threshold while remaining intoxicating.
Industry at a Crossroads
Hemp-derived THC drinks have grown into a multimillion-dollar category since the 2018 Farm Bill legalized hemp. Companies from craft breweries to major beverage manufacturers have launched products containing delta-8 THC, delta-9 THC, and other hemp cannabinoids. The category attracted significant investment in 2023 and 2024, with some analysts projecting it could reach $1 billion in annual sales.
But those projections assumed continued federal legality. The DEA's new rule would pull the rug out from under the entire sector.
Van Duyne represents Texas's 24th congressional district, which includes parts of Dallas and Fort Worth. Texas has been a battleground for hemp policy, with state lawmakers attempting multiple times to restrict intoxicating hemp products. The state's hemp industry has pushed back, arguing that properly regulated products deserve a legal pathway.
The Political Calculus
Van Duyne's proposal puts her at odds with the DEA and potentially with some members of her own party who have called for stricter hemp controls. Republican lawmakers in states like Tennessee and Texas have led efforts to ban or heavily restrict hemp-derived intoxicants at the state level, citing concerns about youth access and impaired driving.
Yet the bill also reflects a growing recognition that the hemp beverage category has matured beyond the "gas station edibles" that drew regulatory scrutiny. Major alcohol distributors now carry hemp drinks. Some products are sold in age-restricted venues with responsible serving practices similar to alcohol.
The legislation would need to define clear regulatory standards for hemp beverages, including labeling, potency limits, and age restrictions. Details of Van Duyne's specific proposal remain under wraps as she gathers input.
What Happens Next
The DEA's interim final rule takes effect in phases throughout 2025. Hemp businesses have until specific deadlines to comply or cease operations. The beverage industry has lobbied hard for an exemption, arguing that drinks pose lower risk than high-potency edibles and that the category deserves tailored regulation rather than prohibition.
Van Duyne's bill would need to move quickly to provide relief before companies start shutting down production lines. The legislative calendar is tight, and hemp policy has proven contentious even within the Republican caucus. Some members want stricter controls, while others favor a hands-off approach to hemp regulation.
The bill's circulation marks the first major congressional response to the DEA's hemp crackdown. Whether it gains traction will depend on how Van Duyne builds support and whether the beverage industry can demonstrate that its products warrant special treatment under federal law.
This article is based on original reporting by www.marijuanamoment.net.
