A North Carolina hemp business owner is calling on federal lawmakers to study his state's regulatory challenges before crafting national hemp policy, warning that uncertainty has made operating a legitimate business increasingly difficult.
Chris Karazin, who runs Carolindica, a hemp company in North Carolina, wrote that the past year has forced him to spend nearly as much time navigating regulatory uncertainty as running his actual business. His experience reflects broader tensions as states and the federal government grapple with regulating hemp-derived products that millions of Americans already use.
"Lawmakers have an opportunity to build a regulatory framework that protects consumers while preserving access to products that millions of Americans already use," Karazin wrote in an op-ed published this week.
North Carolina has emerged as a key battleground in the hemp debate. The state's legislature has considered multiple proposals to regulate or restrict hemp-derived cannabinoids, creating a patchwork of uncertain rules that businesses must navigate. Some proposals have sought to ban intoxicating hemp products entirely, while others have attempted to establish age restrictions and testing requirements.
The Federal-State Disconnect
The regulatory confusion stems from the 2018 Farm Bill, which legalized hemp production but left many questions unanswered about derivative products. States have responded with wildly different approaches—some embracing hemp-derived cannabinoids, others moving to restrict them, and many caught in legislative limbo.
Congress is now considering how to address hemp regulation in the next Farm Bill, which faces an uncertain timeline after multiple extensions. Proposals range from banning intoxicating hemp products to establishing federal standards for testing and labeling.
Industry advocates argue that outright bans would eliminate a legal market that has grown to serve millions of consumers, particularly in states without adult-use cannabis programs. But critics, including some law enforcement groups and state cannabis regulators, contend that intoxicating hemp products circumvent state marijuana laws and lack adequate safety oversight.
What Business Owners Face
For operators like Karazin, the regulatory uncertainty creates immediate business challenges. Companies must decide whether to invest in inventory, equipment, and staff without knowing if their products will remain legal. Banks and payment processors often refuse to work with hemp businesses due to compliance concerns. And consumers face confusion about product safety and legality.
North Carolina's experience offers a case study in the challenges of state-level regulation. The state has debated hemp policy for multiple legislative sessions without reaching consensus, leaving businesses and consumers in a prolonged state of uncertainty.
Some hemp companies have already begun scaling back operations or relocating to states with clearer regulatory frameworks. Others have shifted product lines to focus on non-intoxicating cannabinoids like CBD, though those markets face their own regulatory challenges.
The Path Forward
Karazin's call for federal action reflects growing industry sentiment that clear national standards are needed to resolve the current patchwork system. But finding consensus will be difficult, given the competing interests of state cannabis programs, hemp businesses, law enforcement, and consumer advocates.
The next Farm Bill represents the most likely vehicle for federal hemp reform, but its passage remains uncertain. Congressional leaders have indicated they want to address hemp regulation, but the specifics of any proposal—and whether it can gain enough support to pass—remain unclear.
For now, businesses in North Carolina and other states continue operating in regulatory gray areas, hoping federal lawmakers will provide the clarity that state legislatures have struggled to deliver.
This article is based on original reporting by www.marijuanamoment.net.
