Al Harrington, former NBA player and founder of Viola Brands, says state hemp bans are hitting responsible operators hardest while his company prepares for possible federal restrictions on intoxicating cannabinoids.
Texas recently exempted hemp beverages from its broader crackdown on intoxicating hemp products, creating a patchwork of state regulations that Harrington says disadvantages companies that have played by the rules. The Viola founder told MJBizDaily he's already adjusting product formulations in anticipation of a potential federal cap on THC content in hemp products, likely in the 3-5 mg range.
"The companies that have been trying to do things the right way are the ones getting crushed," Harrington said, pointing to the regulatory whiplash as states scramble to address Delta-8 THC and other hemp-derived intoxicants.
The Texas Exception
Texas lawmakers passed restrictions on intoxicating hemp products earlier this year but carved out an exemption for beverages containing hemp-derived cannabinoids. The decision reflects growing recognition of the beverage category's potential as states grapple with how to regulate products that emerged from the 2018 Farm Bill's hemp legalization.
The beverage exemption creates opportunities for companies focused on that format, but Harrington's concern centers on the broader regulatory uncertainty. Multiple states including Louisiana, Minnesota, and Oregon have enacted varying restrictions on hemp-derived intoxicants, with some banning them outright and others imposing age limits or potency caps.
Viola has built its brand on premium cannabis products in adult-use markets, but the company has also explored hemp-derived options as federal marijuana prohibition continues. Harrington's preparation for a federal THC cap suggests industry insiders expect Congress or the FDA to eventually step in.
Industry Readjustment
The potential 3-5 mg federal cap would represent a significant reduction from current hemp products on the market, some of which contain 10 mg or more of Delta-8 THC or other intoxicating cannabinoids per serving. Companies would need to reformulate products or risk being shut out of the legal market.
Harrington's comments come as the hemp-derived cannabinoid sector faces an existential moment. What began as a legal gray area exploiting the Farm Bill's definition of hemp (cannabis with less than 0.3% Delta-9 THC) has evolved into a multi-billion dollar market for intoxicating products sold outside state cannabis programs.
But the backlash has been swift. State lawmakers have expressed concern about unregulated intoxicating products, particularly their availability to minors and lack of testing requirements. The patchwork of state responses has created compliance nightmares for multi-state operators.
What Compliance Looks Like
Viola's proactive approach contrasts with some hemp operators who have pushed regulatory boundaries. Harrington has advocated for clear federal standards rather than the current state-by-state chaos, arguing that responsible companies need consistent rules to operate.
The company's preparation for lower THC limits suggests Harrington believes federal action is inevitable, whether through Congressional legislation or FDA rulemaking. The agency has issued warning letters to hemp companies but has not yet established comprehensive regulations for hemp-derived intoxicants.
Industry observers expect the next farm bill debate to address intoxicating hemp products directly, though Congress has repeatedly punted on the issue. In the meantime, companies like Viola are hedging their bets by developing products that could survive stricter regulations.
The Texas beverage exemption may provide a template for other states seeking middle-ground approaches, allowing regulated hemp beverages while restricting other formats. But until federal clarity emerges, companies will continue navigating what Harrington describes as a punishing regulatory environment for those trying to stay compliant.
This article is based on original reporting by mjbizdaily.com.
