Federal Threat Looms Over Wisconsin’s Hemp‑Derived THC Market
Dillon Beyer, co‑owner of Tree Huggers Cannabis in La Crosse, woke up to a barrage of text messages on Monday morning. The messages warned that a provision tucked into the U.S. Senate continuing resolution—which the House had passed and President Donald Trump signed on Wednesday—could effectively ban the sale of many hemp‑based products his company relies on.
The Legislative Provision
The clause in question targets the “unregulated sale of intoxicating hemp‑based or hemp‑derived products.” If enacted, it would make items containing even low doses of THC—such as vapes, oils, gummies, and beverages—non‑compliant under federal law. Beyer explained that this would force his business to close because virtually all of its current inventory would become illegal.
In Wisconsin, where both medical and recreational marijuana remain prohibited, the 2018 Farm Bill created a loophole that removed hemp from the list of controlled substances. As a result, products with low‑level THC have been legally sold in stores, gas stations, and breweries across the state, despite the broader ban on marijuana.
Industry Reaction
Phillip Alberti, a research program manager at the University of Wisconsin‑Madison’s alternative crops lab, notes that hemp has applications beyond its psychoactive uses—including fiber, animal feed, and sustainable building materials. However, he says reliable data on the size of Wisconsin’s hemp sector are scarce. “I can’t go anywhere without seeing those products,” Alberti remarked, pointing to their presence in retail outlets ranging from coffee shops to convenience stores.
The nationwide market for hemp‑derived THC products is described as a multibillion‑dollar industry, though critics argue it suffers from insufficient oversight. They contend that the easy availability of these items—often packaged to resemble candy or snacks—poses risks to minors and should be subject to the same regulations as traditional marijuana.
Supporters of the sector, such as Alla Tsypin and Richard Bowman of RA! Wellness in Madison, acknowledge the need for stronger standards. Tsypin emphasized that consistent lab testing, transparent ingredient labeling, and responsible marketing are essential, but an outright ban would eliminate a viable alternative for adults seeking stress relief or a substitute for alcohol.
Looking Ahead
The continuing resolution gives businesses a 365‑day window to achieve compliance with the new restrictions. For Tsypin and Bowman, that period offers time to digest the shock, explore product reformulations, and potentially pivot their operations. Both entrepreneurs hope the sudden regulatory shift will spark a broader conversation about sensible hemp regulation and encourage public backing for legislative reforms at the state or federal level.
Beyer believes that the current focus on “bad actors” in an under‑regulated market has unfairly tarnished the reputation of responsible operators. He notes that Tree Huggers already checks customer IDs and uses dark, clearly adult‑oriented packaging to keep products away from children. The upcoming year, he argues, could be used to engage distributors, retailers, and consumers in advocating for clearer, science‑based rules rather than a sweeping prohibition.
As Wisconsin’s hemp‑derived THC industry navigates this uncertain landscape, stakeholders stress the importance of evidence‑based policy, robust testing protocols, and continued dialogue between businesses, regulators, and the communities they serve.
Source: Here
