DEA Explains Cannabis Rules: Impact on the Cannabis Industry

Three key TDR findings regarding the DEA and the cannabis industry:

1. The DEA’s THCA ruling could drastically impact the hemp and cannabis industry.
2. DEA’s stance influences Farm Bill discussions on hemp regulations.
3. Stakeholders support harmonized cannabis regulations to ensure market transparency.

The DEA’s interpretation that tetrahydrocannabinolic acid (THCA) should be included in the total delta-9 THC concentration could have far-reaching consequences for the hemp and cannabis industry. The DEA clarified this position in response to inquiries regarding THCA’s legal status under the Controlled Substances Act (CSA). As the DEA stated: “With respect to THCA, Congress has directed that, in determining whether a substance constitutes hemp, the delta-9 THC concentration be tested “using the post-decarboxylation method or other similarly reliable methods.”

The DEA’s explanation suggests that THCA in hemp products, when decarboxylated, contributes to the total delta-9 THC value, making many hemp products potentially non-compliant. This interpretation has caused significant concern in the cannabis industry. Jonathan Miller, general counsel of the U.S. Cannabis Roundtable, warned: “This interpretation will destroy the cannabis industry. Most hemp farmers, even fiber and grain farmers, would not follow these rules.”

The DEA’s position is particularly important as Congress considers more stringent regulations on hemp-derived cannabinoids in the revised Farm Bill. This includes popular cannabinoids such as delta-8 THC, which have gained popularity in the market but remain in a regulatory gray area. The lack of clear guidance has led to inconsistency and confusion in enforcement, complicating the situation for both producers and consumers.

Moreover, the ongoing debate over the legal status of various cannabinoids highlights the broader issue of federal cannabis regulation. While hemp-derived cannabinoids, including CBD, have shown promise in a variety of applications, the lack of comprehensive federal regulations has hampered their development. The recovery of the cannabis market in 2023, despite these challenges, highlights the sector’s resilience and potential.

Industry stakeholders argue that the current patchwork of state and federal regulations is unsustainable. They support a harmonized regulatory framework that would provide clarity and stability. The current situation, where interpretations like the DEA’s on THCA could drastically change the market landscape, underscores the urgency of this need.

The DEA letter highlights the complexity of cannabis regulations. “The ‘decarboxylation’ process converts delta-9-THCA to delta-9-THC,” said Terrence Boos, chief of the DEA’s Drug and Chemical Evaluation Section. “Thus, in order to enforce the definition of hemp, the delta-9 THC level must match any delta-9 THCA.”

As the cannabis industry evolves, clear and consistent regulations are critical. Current political conflicts and economic challenges highlight the need for a comprehensive approach to the legalization and regulation of cannabis. This approach would not only support the development of the industry, but also ensure consumer safety and product quality.

The 2018 Farm Bill sought to clarify hemp production, but the DEA’s clarification on THCA shows that confusion still exists. The cannabis industry needs clear, science-based regulations to adapt to its rapid evolution and ensure regulatory consistency. Want to stay up to date with everything related to psychedelia, cannabis, artificial intelligence and cryptocurrencies? Sign up for our Daily Baked in newsletter!