The legal status of hemp has been under intense scrutiny ever since the 2018 Farm Bill federally legalized hemp (defined as cannabis with less than 0.3% delta-9 THC). However, as America’s hemp and cannabis industries mature, unforeseen legal ambiguities, regulatory gaps, and enforcement challenges have emerged. In August 2025, the Congressional Research Service (CRS) published a pivotal report outlining four vital considerations for Congress as the nation seeks to recalibrate the federal hemp legal framework. Stakeholders across the sector are closely monitoring these CRS hemp policy recommendations as Congress debates revisions to the Farm Bill and future regulation of hemp-derived cannabinoids.
Understanding the Regulatory Backdrop
The 2018 Farm Bill (source) distinguished hemp from marijuana by THC concentration, catalyzing a surge in the production of a wide array of cannabinoids, including those with intoxicating potential like delta-8 and delta-10 THC. However, this broad definition created regulatory ambiguity, conflicting state policies, and new consumer protection concerns. Recent federal and state court decisions, along with inconsistent enforcement by agencies like the DEA and FDA, have left both hemp businesses and regulators searching for clarity (CRS PDF, Aug 2025).
With the 2025 Farm Bill on the horizon and momentum building in Congress to address loopholes and public health risks, the CRS’s four core considerations merit close attention from business leaders, compliance officers, policymakers, and advocates alike.
The Four Considerations: Key Takeaways
1. Clarifying or Modifying the Definition of Hemp
Definition Ambiguity: The CRS points out that the 2018 Farm Bill uses total delta-9 THC content (not the total of all THC analogues), causing legal confusion, particularly as products with intoxicating cannabinoids—like delta-8 THC—proliferate. Courts have interpreted the law inconsistently, and some states enacted their own restrictions on synthetic and semi-synthetic cannabinoids.
CRS Recommendation: Congress should consider whether to revise the federal definition of hemp, possibly by:
- Setting THC limits that account for all intoxicating cannabinoids (not just delta-9).
- Specifying which forms of THC or synthetic cannabinoids are permissible.
- Clarifying whether naturally derived or synthetically created cannabinoids are included in “hemp.”
Implications:
- Businesses must monitor not only federal changes but also state responses, as states often move quickly to restrict certain substance types.
- For investors and compliance officers, close review of ingredients and supply chain will be critical as definitions evolve.
For background, see the Cannabis Business Times summary.
2. Delegating or Centralizing Federal Enforcement
Enforcement Gaps: Currently, enforcement is split among multiple agencies (principally the DEA, USDA, and FDA). This patchwork oversight leads to uncertainty and hinders uniform compliance.
CRS Recommendation: Congress should consider:
- Designating a single federal agency with primary oversight over hemp and its derivatives.
- Harmonizing enforcement priorities and compliance requirements across agencies.
- Explicitly outlining agency authority over testing, labeling, and marketing.
Implications:
- A clear regulatory home could help companies streamline their compliance efforts and reduce the risk of federal action.
- For businesses operating in multiple states, federal agency clarity is essential for consistent operations.
3. Regulating Synthetic and Semi-Synthetic Cannabinoids
Synthetic Sources: The rise of synthetic and semi-synthetic cannabinoids—particularly intoxicating hemp derivatives—has prompted enforcement actions and legislative debates nationwide. The Farm Bill’s language leaves open questions about which compounds are actually legal, especially those produced from chemical reactions, not from the cannabis plant naturally.
CRS Recommendation: Congress could:
- Specify whether hemp law includes only cannabinoids derived directly from the plant, or also those synthesized from hemp constituents.
- Address consumer safety and youth access concerns around these synthetic cannabinoids, especially as some have exhibited health risks or been found in unregulated products.
- Consider restrictions or bans on certain synthetic cannabinoids while leaving avenues for FDA or future research approval.
Implications:
- Compliance teams must refine ingredient sourcing and product testing protocols to avoid inadvertently processing banned substances.
- Retailers and dispensaries carrying hemp-derived cannabinoids (including popular vape and edible products) could face new bans or regulations in 2025 and beyond.
4. Balancing State and Federal Authority
Preemption and Patchwork Policy: States have taken widely divergent paths—some banning all intoxicating hemp products, others encouraging their sale. State-federal overlaps have sparked legal disputes and confusion, particularly regarding transportation and sale of hemp goods across state lines.
CRS Recommendation: Congress should consider whether to:
- Preempt certain state regulations, creating uniform national standards for product safety, labeling, and permissible cannabinoids.
- Maintain the status quo, giving states wide leeway to regulate within their borders.
- Clarify the legal status of interstate hemp commerce.
Implications:
- For multi-state operators and supply chains, harmonization could dramatically reduce risk and regulatory burden.
- Local businesses and legacy farmers may favor state control to suit local market conditions, while national retailers may push for preemption.
Compliance and Licensing: Industry Obligations Remain in Flux
Regardless of the Farm Bill’s revision schedule, cannabis compliance, testing, labeling, and tracking obligations remain central for licensed hemp businesses:
Key Ongoing Requirements
- USDA Hemp Licensing: Growers must maintain USDA-compliant licensing, subject to random testing and disposal rules for “hot crops” (>0.3% THC).
- State Licenses: Many states require separate registration or permits for processing and selling hemp-derived products.
- Testing and Labeling: Rigorous potency and contaminant testing standards are emerging at both state and federal levels, with expanded requirements likely as new regulations roll out.
- Track-and-Trace: Increasingly, track-and-trace requirements are extending beyond cannabis to encompass hemp supply chains, ensuring traceability and consumer protection.
For updated licensing requirements, consult your state’s department of agriculture or cannabis regulatory agency, and refer to compliance resources at CannabisRegulations.ai.
What to Watch: Upcoming Deadlines and Legislative Timelines
- USDA’s 2025 licensing window: USDA policy changes or implementation timelines may shift concurrent to Farm Bill amendments.
- State-level moratoriums and bans: Some states are enacting emergency rules on intoxicating hemp products; stay current with your state regulator.
- Pending Congressional Action: The 2025 Farm Bill negotiations are a crucial watchpoint for all businesses.
Enforcement Updates: New Priorities and Compliance Risks
- DEA Warning Letters: The DEA continues to issue enforcement notices for products that allegedly exceed federal THC limits or contain prohibited synthetic cannabinoids.
- FDA Action: The FDA has focused on preventing unapproved medical claims and has signaled increased scrutiny of hemp cannabinoid products targeting minors or vulnerable populations.
- State Enforcement: Many state AGs are ramping up enforcement against mislabeled, untested, or illicit hemp products.
Industry participants should review their compliance systems, update staff training, and revise SOPs as federal and state priorities shift.
Conclusions: Actionable Insights for Businesses and Policymakers
The CRS hemp policy recommendations offer a historic opportunity to resolve the regulatory ambiguity that has hindered hemp market stability and consumer safety since 2018. Congress’s next steps will shape the compliance landscape—affecting everything from seed genetics to end-product retailing.
Key Takeaways:
- Revisions to the hemp definition could drastically expand or restrict which cannabinoids are lawful.
- Expect more coordinated, possibly centralized enforcement in the next Farm Bill.
- Stay proactive: Review all product SKUs, reformulate as needed, and engage with state and federal associations on legislative developments.
For comprehensive, up-to-date support on licensing, regulations, and compliance—including tailored alerts as new federal and state rules are adopted—explore CannabisRegulations.ai today and safeguard your business’s future in a rapidly evolving landscape.
