
National Restaurant Association Urges Congress to Postpone Hemp THC Beverage Ban and Establish Federal Regulations
The National Restaurant Association has called on Congress to delay the federal ban on hemp THC beverages and implement regulations, citing strong consumer demand and a growing market opportunity
Key Points
- 1The National Restaurant Association urged Congress to delay the federal ban on hemp THC beverages and create a regulatory framework
- 2Internal NRA research shows 26% of restaurants are interested in offering hemp drinks, representing a potential $1.6 billion market
- 3Rep. Beth Van Duyne is circulating draft legislation to legalize hemp THC beverages federally with specific THC limits and taxes
- 4Target expanded hemp THC beverage sales in Minnesota, and U.S. hemp crop value reached $750 million in 2025
- 5The Biden administration has expressed openness to revising hemp regulations to preserve access to full-spectrum CBD products
The National Restaurant Association (NRA), a leading voice for the U.S. restaurant industry, has called on Congress to halt the impending federal recriminalization of hemp THC beverages and instead prioritize creating a clear regulatory framework. This initiative comes as a response to legislation signed last year that will redefine legal hemp products and restrict those containing more than 0.4 milligrams of total THC per container starting November 12. The NRA argues that delaying the ban for two years would give businesses and lawmakers time to establish sensible standards, ensuring consumer safety and giving restaurant operators certainty as the market evolves
In a letter addressed to congressional leaders, the NRA advocated for regulations mirroring those for alcohol, including age verification, quality control, clear labeling, and impairment standards. The group further emphasized that states and localities should maintain the ability to tailor rules to their specific markets. Sean Kennedy, chief advocacy officer for the NRA, stated in a press release, “Consumers have made it clear that they want hemp-derived THC beverages. The only question is whether Washington will create a way they can enjoy them safely or if they will allow a thriving market supporting small business owners to disappear because they wouldn’t create a sensible regulatory framework.”
Internal research from the NRA suggests that while only 5 percent of restaurants serving alcohol currently offer hemp drinks, 26 percent are interested in doing so under a federal regulatory system. This points to a potential $1.6 billion annual market, driven largely by shifting consumer habits—especially among younger diners seeking alternatives to traditional alcoholic beverages. Kennedy highlighted the opportunity for restaurant operators, saying, “For operators—especially those running high-volume beverage venues—these products offer an alternative for guests who want a social drinking experience without alcohol.”
The push from the NRA coincides with legislative activity in Congress. Representative Beth Van Duyne (R-TX) is circulating a draft bill, the Hemp-Derived Beverage Regulatory Clarity Act, which would allow adults over 21 to purchase hemp THC drinks containing up to 5 milligrams of delta-9 THC per serving and impose a 10-cent federal tax per milligram of hemp-derived cannabinoid. Meanwhile, the Biden administration has expressed willingness to collaborate with Congress to update hemp definitions and maintain access to full-spectrum CBD products, while restricting products that pose health risks. The White House stated, “The Administration supports advancement of this legislation, but looks forward to addressing its concerns prior to enactment.”
Major retailers are already responding to growing demand. Target has expanded its pilot program to offer hemp-derived THC beverages and edibles at all 72 of its Minnesota stores after a successful trial. The U.S. Department of Agriculture reported that American farmers grew $750 million worth of hemp crops in 2025, marking a 64 percent year-over-year increase. The Centers for Medicare & Medicaid Services (CMS) has also finalized rules to cover certain hemp products, including those with up to 3 milligrams of THC per serving, for eligible Medicare patients. These developments underscore the market’s rapid growth and the need for regulatory clarity
OG Lab notes that the outcome of this congressional debate will shape not only the availability of hemp THC beverages but also the future of the broader hemp and CBD market in the United States. With significant consumer interest, evolving state policies, and major retail participation, the regulatory decisions made in the coming months could have lasting impacts on restaurants, farmers, and consumers nationwide

