North Carolina lawmakers are considering a near-total ban on hemp-derived THC beverages, a move that one major distributor says will backfire by pushing consumers toward unregulated products.
Melissa Johnston of Tryon Distributing argued in an op-ed published by Carolina Journal that the state should regulate the emerging hemp beverage market rather than prohibit it. "The consumer demand in North Carolina is clear, and the passing of this near-total ban bill would take good actors like us out of this space and allow bad actors to flourish," Johnston wrote.
The debate comes as North Carolina lawmakers grapple with how to handle hemp-derived intoxicating cannabinoids—products that emerged in a regulatory gray area following the 2018 Farm Bill's legalization of hemp. THC beverages have gained significant market share in states without adult-use cannabis programs, offering consumers a legal alternative to traditional marijuana products.
The Regulatory Vacuum
Johnston contends that North Carolina has a chance to establish what she calls "the best hemp beverage law in the country." The current legislative approach, however, appears headed toward prohibition rather than regulation.
The distinction matters for market dynamics. Regulated frameworks typically include testing requirements, potency limits, age restrictions, and labeling standards. Bans, by contrast, don't eliminate demand—they just push it underground or across state lines.
Several states have taken varied approaches to hemp-derived THC products. Minnesota recently implemented comprehensive regulations for hemp beverages, including a 5mg THC limit per serving and a 50mg limit per package. Colorado has similarly regulated the products within its existing cannabis framework. Other states, including Montana and Oregon, have moved to restrict or ban them entirely.
Industry Stakes
The hemp beverage sector has grown rapidly since 2018, with market research firm Headset estimating the category could reach $2 billion nationally by 2025. Distributors like Tryon operate in the space between hemp farmers and retail outlets, handling logistics, compliance, and quality control.
Johnston's argument hinges on a familiar regulatory principle: prohibition rarely works when consumer demand is strong. Instead, it creates opportunities for unscrupulous operators willing to skirt the law. Regulated markets, she suggests, allow companies to compete on quality and safety rather than who can fly furthest under the radar.
North Carolina's legislature has yet to vote on the proposed ban. The state lacks a legal adult-use cannabis program, though it has allowed medical cannabis in limited circumstances. That makes hemp-derived products particularly significant for consumers seeking legal access to THC.
What's Next
The legislative session continues, with industry stakeholders pushing for a regulatory framework that would include testing standards, potency caps, and retail restrictions. Johnston and other distributors argue this approach would generate tax revenue, create jobs, and protect consumers—all while acknowledging the reality of market demand.
The outcome in North Carolina could influence other states wrestling with similar questions about hemp-derived intoxicants. As the regulatory patchwork continues to evolve, the tension between prohibition and regulation remains a defining issue for the hemp industry.
Lawmakers have not announced a timeline for voting on the legislation.
This article is based on original reporting by www.marijuanamoment.net.
