Last week, as stated into a US Hemp Roundtable report, US Senate Majority Leader Addison Mitchell McConnell Jr. – is an American politician serving as Kentucky’s senior United States senator – submitted a proposal to the US Senate Appropriations Subcommittee on Agriculture that would require Last week, depending to a United State Hemp Roundtable essay, US Senate Majority Leader Mitch McConnell proposed a proposal to the US Senate Appropriations Subcommittee on Agriculture that would want the Food and Drug Administration (FDA) to set an enforcement discretion policy for the sale of hemp CBD products within 120 days.
Challenges faced by the hemp industry
By signing the 2018 Farm Law, President Donald Trump authorized hemp at the federal level last December 2018. Hemp contains less than 0.3% Tetrahydrocannabinol (THC) and more cannabidiol (CBD). Tetrahydrocannabinol (THC) provides the psychoactive effects of cannabis and can be dangerous when consumed in large quantities. On the other hand, cannabidiol (CBD) is used in treating various medical conditions and as a raw material in food and other products.
However, the Food and Drug Administration (FDA) hasn’t approved any hemp cannabidiol (CBD) products apart from Epidiolex, which treats seizures. The non-approval of cannabidiol (CBD) products by the Food and Drug Administration (FDA) makes the interstate distribution and sale of these products illegal. In July, Curaleaf (CURA) (CURLF) received a warning letter from the Food and Drug Administration (FDA) for promoting unapproved CBD-based products.
McConnell’s proposal to speed up cannabidiol (CBD) product legalization
According to the US Hemp Roundtable article, the prohibition of interstate commerce of cannabidiol (CBD) products has been a significant concern for the hemp cannabidiol (CBD) industry. The report added that McConnell’s new proposal requires the Food and Drug Administration (FDA) to issue an enforcement discretion policy on hemp cannabidiol (CBD) within 120 days. The proposal wants the Food and Drug Administration (FDA) to continue the enforcement discretion policy until it implements the final regulatory process. We expect the proposal to boost the hemp cannabidiol (CBD) business in the US. The article added that McConnell’s new proposal would allow financial institutes to do business with cannabidiol (CBD) players.
Last year, McConnell pushed for hemp legalization. However, he was against the legalization of cannabis. He told, “I do not have any plans to endorse the authorization of marijuana,” reported The Hill in May 2018.
Growing hemp business in the US
Since the permitting of hemp at the federal field, there has been an increase in the hemp industry. BDS Analytics and Arcview Market Research expect the US cannabidiol (CBD) market to exceed $20 billion by 2024. So, many cannabis players, such as Aurora Cannabis (ACB), Canopy Growth (CGC) (WEED), and Tilray (TLRY), are looking at gaining market share in the growing cannabidiol (CBD) market in the US.
In July, Aurora Cannabis announced a partnership with the UFC to study the effects of hemp-derived cannabidiol (CBD) products on various medical conditions in its athletes. The company plans to utilize the data to develop hemp-derived cannabidiol (CBD) topicals. Last month, Aurora completed its acquisition of Hempco Food and Fiber, which manufactures and sells hemp-derived cannabidiol (CBD) products. For more on Aurora’s CBD-related initiatives in the US, read Aurora Cannabis Focuses on the US cannabidiol (CBD) Market.
On its first-quarter earnings call, Canopy Growth announced that it had developed a portfolio of hemp cannabidiol (CBD) products and planned to introduce them later this year. Moreover, the administration stated that it had been working on improving a supply chain since January and had planted thousands of acres of hemp for treatments. The canopy also plans to open a Hemp Industrial Park in New York and is researching hemp and hemp derivatives at its Batavia facility in Illinois.
In August, Tilray received approval to import medical cannabidiols for clinical trials from the US government. The NYU School of Medicine will lead the trials to study the effects of cannabidiol (CBD) on patients suffering from alcohol use disorder. In February, the company obtained Manitoba Harvest, which sells and manufactures hemp products, to grow its hemp business in the US.