Federal Hemp THC Ban Threatens Cannabis Genetics Trade
The federal hemp THC prohibition bill signed by President Trump threatens the cannabis genetics trade by reclassifying certain marijuana seeds as illegal. The industry faces significant adjustments as it navigates these new regulations
Key Points
- 1Federal hemp THC prohibition affects cannabis genetics trade
- 2Marijuana seeds producing over 0.3% THC to become illegal
- 3Legislation aims to close 'hemp loophole' from 2018 Farm Bill
- 4Potential loophole for tissue cultures and clones remains
- 5Advocacy groups push for new regulatory framework
The recent signing of a federal hemp THC prohibition bill by President Donald Trump has significant ramifications for the cannabis genetics industry. The bill, which will come into effect in November 2026, includes a provision that will make marijuana seeds federally illegal if they produce plants with more than 0.3% THC. This change poses a threat to the trade of marijuana genetics, which has been a cornerstone for many cultivators in the $32 billion legal marijuana industry
Attorney Jason Adelstone highlighted the potential impact of this legislation, noting that seeds from high-THC genetics, including those with tetrahydrocannabinolic acid (THCA), will be reclassified as illegal marijuana. This shift could severely disrupt the international seed trade, which has thrived under the previous legal framework. Many seed banks have been operating under the assumption that cannabis seeds qualify as hemp, based on a 2022 DEA determination
The new legislation aims to close the 'hemp loophole' that emerged from the 2018 Farm Bill, which enabled a booming $28.3 billion hemp industry. Products like hemp-derived THC beverages and gummies, as well as THCA flower, are now facing potential enforcement actions. While the exact measures authorities will take remain uncertain, the industry has until November 13 to adapt to the new regulations
Despite the impending restrictions, there remains a potential loophole that could allow the trade in cannabis genetics to continue. According to Adelstone, while the legislation targets 'viable seeds,' it does not explicitly address tissue cultures and clones. This oversight may provide breeders with a legal avenue to continue their operations across state and international borders
Advocacy groups are already urging Congress to replace the restrictions with a regulatory framework that would permit the sale of hemp products under strict guidelines. This legislative change underscores the evolving landscape of cannabis regulation and its impact on the industry's future