Dual-Industry Executive Urges Congress to Regulate All THC Products

Industry Insider Breaks Ranks on Hemp Loophole

An executive profiting from both state-licensed marijuana and hemp-derived THC products argued Congress must establish a single THC regulatory framework rather than allowing the dual-market status quo to persist. The September 8 op-ed, published in Marijuana Moment, didn't disclose the author's company affiliations but confirmed the writer operates businesses in both sectors — a rare position that straddles the legal divide between state-regulated cannabis and federally compliant hemp.

His argument centers on the Farm Bill's delta-9 THC measurement, which excludes THCA (the non-intoxicating acid form that converts to delta-9 when heated). Hemp producers have exploited this gap. They sell high-THCA flower that tests below 0.3% delta-9 in its raw form but delivers intoxicating effects identical to marijuana once smoked or vaped.

The Chemistry Loophole Congress Didn't Anticipate

The 2018 Farm Bill's 0.3% delta-9 THC threshold was written without accounting for decarboxylation — the heat-driven conversion of THCA into delta-9 THC. This oversight created a regulatory vacuum. A hemp flower testing at 0.29% delta-9 and 20% THCA is federally legal as harvested, but converts to roughly 17.5% total THC when smoked — comparable to dispensary-grade marijuana.

The op-ed author acknowledged this loophole has allowed hemp operators to bypass state licensing requirements, lab testing mandates, and taxation structures that marijuana businesses face. State-licensed cultivators pay effective tax rates above 50% under 280E, while hemp-derived THC sellers operate with standard business deductions — a competitive imbalance that's grown harder to defend.

What Federal THC Regulation Would Look Like

The executive proposed Congress adopt a total-THC standard that measures all THC isomers and precursors, not just delta-9 in its final form. Key components of the suggested framework include:

• Total THC calculation: delta-9 + (THCA × 0.877) to account for decarboxylation conversion ratios
• Federal age gate: 21+ purchase requirement for any product exceeding 0.3% total THC
• Lab testing mandate: third-party COAs required for all intoxicating cannabinoid products
• State authority preserved: allow states to set stricter limits or maintain prohibition if they choose
• Interstate commerce: permit licensed operators to ship across state lines where legal, ending the patchwork enforcement

The proposal stops short of full federal legalization but would bring hemp-derived intoxicants under the same regulatory umbrella as alcohol or tobacco.

Why a Marijuana Operator Would Support Hemp Regulation

The executive's dual position in both industries lends unusual credibility to the argument — he's calling for rules that would constrain his own hemp operations. His op-ed framed the current system as untenable for consumers, who face zero consistency in product potency or safety testing when buying THCA flower or delta-8 gummies at gas stations.

State-licensed marijuana operators have lobbied for years to close the hemp loophole, arguing it undercuts their compliance costs. Hemp advocates have countered that federal THC regulation would destroy the Farm Bill's economic promise for rural farmers. This executive's position — that both sectors need the same rules — attempts to split that difference.

For context on the legal landscape this debate sits within, see the CannIntel topic hub on federal THC regulation.

Enforcement Reality: States Already Moving Ahead

At least 19 states have enacted their own total-THC standards or banned intoxicating hemp cannabinoids outright, creating the regulatory patchwork the op-ed warns against. Minnesota, Colorado, and Oregon now measure total THC for hemp compliance. Texas and several Southern states have moved to ban delta-8 and THCA products entirely, with enforcement actions targeting retailers.

DEA has signaled it considers THCA a controlled substance when intended for human consumption, but the agency hasn't pursued large-scale enforcement. FDA sent warning letters to delta-8 manufacturers in 2023 but lacks the resources to police the thousands of hemp-derived THC brands now in distribution.

Without congressional action, this state-by-state approach will continue. No one benefits from that outcome — not consumers, not compliant businesses, and not federal agencies tasked with enforcing a law written before the chemistry was understood.

The op-ed didn't specify a legislative vehicle or timeline. No current bill in the 119th Congress addresses total-THC measurement comprehensively, though the next Farm Bill reauthorization — due in 2028 — will force the conversation. Expect hemp and marijuana lobbying groups to sharpen their positions before then.