Hemp Entrepreneurs Brace for Federal THC Ban: How Companies Are Planning for Survival Ahead of 2026 Prohibition

After reaching the big leagues, Joe Salome had plans to bring his hemp THC beverages to major grocery chains like Trader Joe’s. That was before President Donald Trump signed legislation that will effectively outlaw THC hemp products nationwide.

Now, instead of expanding into new retail channels, Salome, founder and managing partner of The Georgia Hemp Co., is focused on selling as much product as possible before the federal redefinition of hemp takes effect in November 2026.

From Major League Baseball Partnerships to Preparing for Federal Prohibition: Salome’s Hemp Business Hits a Turning Point

Last year, Salome threw the first pitch at an Atlanta Braves game as part of The Georgia Hemp Co.’s role as the team’s official CBD partner. Expansion into grocery stores and beyond seemed imminent.

But with federal law set to redefine hemp and outlaw THC-infused products, Salome’s plans have been put on hold. “We’ve been through this before,” he said, referencing Georgia’s 2022 ban on THCA flower, which cut his business in half. “It still gave us the workable framework we’d been screaming to have.”

This time, however, the stakes are higher: the nationwide prohibition could shutter thousands of hemp businesses.

Hemp THC Beverage Makers Hope for Carveouts and Regulatory Guidance

Federal regulators, including the U.S. Food and Drug Administration, are expected to provide a list of allowed cannabinoids within the next three months. Meanwhile, hemp advocates are lobbying Congress to protect the industry in upcoming temporary spending bills.

Key questions remain unanswered:

• Who will enforce the federal ban?
• Will states with regulated hemp industries allow THC sales to continue?
• Will authorities distinguish between low-dose beverages and high-potency products?

Jake Bullock, CEO of low-dose THC beverage company Cann, described the ban as a “one-year shot clock” rather than an outright prohibition. He expects hemp beverages will be allowed under future rules, while superpowered gummies and THCA flower may remain illegal.

THCA Merchants vs. CBD Retailers: Planning Strategies Vary

According to Vince Sliwoski, managing partner of cannabis-focused law firm Harris Sliwoski, the outlook for hemp operators depends heavily on the types of products they sell.

Companies producing compliant CBD products may continue under state regulation, while online THCA sellers could face greater risk. “Operators in states with regulated hemp industries may have better prospects than online THCA merchants,” Sliwoski said.

The federal bill could also prompt states to tighten their rules or ban delta-8 and delta-9 THC products outright, as recently signaled by Illinois Governor JB Pritzker.

Many Hemp Companies Will ‘Let It Ride’ During Grace Period

The federal legislation includes a yearlong grace period, giving operators time to plan and pivot. Salome has prepared by including clauses in leases and contracts to accommodate sudden regulatory changes.

“I think the mentality is to procure as much inventory as possible and continue to sell and provide, whether for my employees or our customers,” Salome said.

For companies like The Georgia Hemp Co. and Cann, the strategy is business as usual for now, while watching federal and state actions closely. “At the end of the day, industries will always survive, even if brands don’t,” Salome added.

The next year will test the resilience and adaptability of the hemp sector, as operators navigate shifting regulations, uncertain enforcement, and the challenge of maintaining growth under a looming federal ban.

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