The rise of hemp-derived cannabinoids like Delta-8 THC is reshaping the cannabis landscape in the U.S. Touted as legal alternatives to Delta-9 THC, these products have surged in popularity, particularly in states where recreational cannabis remains prohibited.
The unregulated nature and potential health risks of these products have ignited fierce debates among policymakers and industry stakeholders. In an exclusive interview with Benzinga, Dr. Carl L. Hart, a renowned neuroscientist, author and the Ziff professor of psychology at Columbia University, offered a stark critique of the current regulatory framework.
The Multi-Billion Consequence Of A Legal Loophole
Delta-9 THC, the primary psychoactive compound in cannabis, remains federally illegal, though several states have legalized it.
This regulatory gray area was further complicated by the 2018 Farm Bill, which legalized hemp and its derivatives, provided they contain less than 0.3% Delta-9 THC by dry weight. This created a loophole that allowed hemp-derived cannabinoids to flourish, offering effects similar to marijuana but sidestepping federal regulation.
As a result, products like hemp-THC gummies, beverages and vape cartridges have surged in popularity, often marketed as legal alternatives to cannabis. Delta-8 THC products alone generated an estimated $1.2 billion in sales in 2023, according to Cannabis Business Times.
However, despite the growth of the hemp-derived market, major cannabis companies like Curaleaf Holdings (OTC:CURLF), Canopy Growth (NASDAQ:CGC) and Tilray Brands (NASDAQ:TLRY) are expanding into this space, Hart sees it as indicative of confusion rather than progress.
The core issue, according to Hart, is the unregulated production of these cannabinoids. Since many hemp-derived cannabinoids are synthesized from hemp-extracted CBD, the chemical conversion process can introduce contaminants, leading to inconsistent product quality.
“It has less to do with the compounds and more to do with the situation under which these compounds are being produced,” he explained.
Public Health Risks Of Unregulated Products
Hart stressed that the rise of hemp-derived cannabinoids mirrors past public health crises linked to drug prohibition. Drawing a parallel to synthetic cannabinoids like Spice and K2, he explained how banning substances without offering safe alternatives drives consumers toward unregulated and often dangerous options.
"Whenever you have unregulated markets… potential harms go away when you regulate the market," he said, likening the current scenario to the issues faced during alcohol prohibition. He also highlighted parallels with the fentanyl crisis, where unregulated drug markets led to dangerous substitutions.
Federal cannabis legalization, he says, would mitigate these risks by providing safe, regulated products.
Economic And Political Incentives Sustain Prohibition
The persistence of federal cannabis prohibition, despite evidence of its harm to public health, reflects deep-rooted economic interests, according to Hart. He pointed to the financial incentives that fuel resistance to reform.
"Law enforcement benefits. Not only law enforcement. Science benefits. Homeland Security benefits. The Drug Enforcement Agency benefits," he said. These institutions, he argued, have little motivation to support policies that could reduce their funding, highlighting their interest in maintaining prohibitionist policies.
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Moreover, the political influence of the hemp industry further complicates the landscape. For instance, in Florida, hemp companies donated over $500,000 to Governor Ron DeSantis and the state's GOP to oppose Amendment 3, which sought to legalize adult-use cannabis.
The amendment fell short and hemp businesses, wary of competition from a regulated marijuana industry, succeeded in maintaining their market dominance undisturbed.
Fragmented State Hemp Regulations Add To The Problem
Meanwhile, inconsistent state regulations exacerbate the challenges posed by unregulated hemp products. States like California, Louisiana and South Dakota have imposed strict regulations or outright bans on hemp-derived THC, attempting to close loopholes.
These measures have been partly prompted by concerns over misleading marketing tactics, including products that resemble children’s snacks, raising alarms about potential risks to minors.
Read Also: Hemp Market Surge: How New Regulations Could Impact Growth
Furthermore, these state-level bans also create unintended consequences. They impact reputable producers and CBD users who rely on consistent, reliable hemp products. Hart criticized this fragmented regulatory approach and emphasized the need for federal oversight, calling for a unified framework that ensures consistency across states.
Disproportionate Impact On Marginalized Communities
The regulatory chaos surrounding hemp-derived cannabinoids also highlights broader inequities in U.S. drug policy. Hart emphasized that Black and Latino populations remain disproportionately affected by arrests, fines and imprisonment for drug-related offenses, despite similar cannabis use rates across demographics.
His perspective challenges investors and industry players to acknowledge the larger context. The unregulated hemp cannabinoid surge reflects a systemic malfunction, one fueled by inconsistent laws and profit-driven deterrents to genuine reform.
Toward Evidence-Based Drug Policy Reform
As debates around hemp-derived cannabinoids intensify, Hart remains firm in his belief that straightforward solutions are available.
Although he expressed skepticism that the U.S. will embrace evidence-based policies anytime soon, Hart insists that the facts remain unchanged: properly regulated markets lead to safer products, safeguard user rights and reduce harm across the board.
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Photo credits: Flickr – Fronteiras do Pensamento / Greg Salibian
