Federal Ban Pushes States to Drop Hemp THC Regulations

Federal Hemp THC Ban Sparks Wave of State Level Crackdowns

The federal ban on hemp derived THC signed into law by President Donald Trump last week—has triggered an immediate shift in state-level policymaking, with several states dropping efforts to regulate hemp THC products and instead moving toward outright prohibition.

Across the country, lawmakers and governors who had previously pushed for tighter oversight now see a green light from Washington to pursue sweeping bans, leaving the $28.3 billion hemp industry facing its most significant threat since the 2018 Farm Bill legalized hemp.

Ohio Moves Toward Full Ban in Wake of Federal Redefinition of Hemp

Ohio appears to be the first state to pivot sharply following the federal action.
Legislators in Columbus are advancing what ABC-5 described as a “tentative deal” that would abandon proposed regulations for hemp-derived THC and replace them with a total ban.

Under the draft plan, all intoxicating hemp products including popular low-dose THC beverages sold in grocery chains, bars and taprooms would be outlawed, Republican state Rep. Tex Fischer confirmed.

Fischer said hemp advocates pushing for a regulatory framework “lost leverage” the moment the federal ban was signed, removing the incentive for lawmakers to negotiate more moderate oversight.

The push for prohibition aligns squarely with the goals of Gov. Mike DeWine, who issued an executive order banning hemp THC in October, a directive that remains tied up in litigation. DeWine is now urging legislators to simply align with federal policy.

If passed, Ohio’s law would wipe out hundreds of businesses and retailers overnight, reversing a booming market that grew rapidly under the state’s permissive hemp rules.

Illinois Reassessing Hemp Regulations After Federal Crackdown

Even before the federal ban passed, Illinois Gov. JB Pritzker had signaled that executive action against hemp THC was on the table. Pritzker has long pushed for a regulatory approach that mirrors California’s model, which requires hemp THC products to be sold exclusively within licensed marijuana channels.

But with the federal prohibition now looming, Illinois policymakers are rapidly backing away from the idea of regulating hemp THC at all—because regulating something soon to be federally illegal no longer makes sense.

Chicago Mayor Brandon Johnson withdrew newly proposed regulations and taxes on hemp THC products shortly after the federal ban was announced, according to Block Club Chicago.

With regulation now politically untenable, Illinois appears poised to let the federal prohibition drive the market rather than craft its own state-level rules.

Florida Signals Renewed Appetite for Banning Hemp THC Products

Florida once considered a potential sanctuary for hemp THC—has also changed tone following the federal action.
Gov. Ron DeSantis vetoed a hemp ban in 2024, surprising industry stakeholders and leaving the hemp beverage and edible market thriving.

But Attorney General James Uthmeier made clear this week that the federal ban has opened the door to a new enforcement era.

Calling Congress’s action “greatly needed,” Uthmeier said Florida is now ready to remove “illegal hemp products” from the state’s consumer market, according to the Florida Phoenix.

This shift suggests that the vetoed 2024 ban could easily return—and this time, with far greater political momentum.

A Rapid Policy Shift Leaves the Hemp Industry on Shaky Ground

Hemp businesses nationwide have spent years lobbying for clear regulations, child-resistant packaging, lab testing requirements, and potency limits. Many believed meaningful federal rules were finally within reach.

But Congress’s move to redefine hemp and federally prohibit intoxicating cannabinoids by November 2026 has dramatically reshaped the landscape:

• States feel empowered to bypass regulation and jump straight to prohibition.
• Hemp operators are losing leverage with lawmakers who previously supported controlled access.
• Investment in hemp beverages, edibles, and THCA flower is now viewed as high risk.
• Tens of thousands of businesses face uncertainty or potential collapse.

For an industry accustomed to volatility, the speed of this political shift is unprecedented.

And with more states likely to follow Ohio, Illinois, and Florida, the next two years may determine whether hemp-derived THC survives in any legal form or fades entirely under federal and state-level pressure.

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