Colorado moves to expand intoxicating hemp products as feds crack down
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The spending bill that reopened the federal government includes a ban on hemp-derived THC and CBD products — a provision that experts say could upend the state's thriving industry.
Why it matters: Even though intoxicating hemp-derived products are not plentiful in Colorado, the industry includes about 140 farmers, hundreds of jobs and millions in sales to other states with large markets.
The intrigue: The question is whether Colorado will comply with the new federal law, or as with marijuana, go its own direction.
State of play: The bill to end the shutdown recriminalizes the hemp products — such as drinks, edibles and related products — legalized in the 2018 Farm Bill by putting limits on THC at 0.4 milligrams per package, which the industry equates to a ban.
- The provision takes effect in November 2026, but a state agriculture official says that farmers are anticipating cannabinoid processors to cancel contracts, resulting in less cultivation.
What we're watching: Just as the feds look to crack down, Colorado cannabis advocates are drafting an industry-backed bill to loosen the state's current restrictions on hemp beverages, Axios Denver has learned.
- A 2023 state law caps hemp-derived THC beverages at 1.75 milligrams per serving and requires a 15-to-1 CBD-to-THC ratio.
- The legislation would remove those restrictions and permit the sale of hemp beverages that include 5 to 10 milligrams of THC anywhere alcohol is sold.
- The regulation of the beverages also would align with alcohol sales, with required training for servers and the same tax levies.
What they're saying: The measure would allow the state's cannabis market to catch up to other states, advocates say.
- "It's very likely the [federal government] will stay out of Colorado and we can chart our own path … as long as we have tight rules and thoughtful regulation," says Brian Vicente, an attorney and leading marijuana advocate, who is helping to draft the bill.
The other side: Some will likely oppose the legislation.
- Henny Lasley, executive director of Denver-based advocacy organization One Chance to Grow Up, said in a statement that closing the loophole in the Farm Bill was "a critical victory for protecting kids from the harms presented by THC."