The United States 2018 farm bill, also known as the Agriculture Improvement Act, legalized the production of hemp. This bill prompted a giant step forward for the CBD industry, considering that up until 2018 hemp-derived CBD was considered a Schedule 1 controlled substance. 

Since the farm bill act, the CBD industry has seen large-scale growth with lucrative outcomes: the CBD market has an estimated growth rate of 31.9% between 2020 and 2027, and is predicted to have a market size value of nearly $10 billion by the end of 2020.

So the CBD market is thriving… Or at least it was. On August 21, 2o2o the DEA decided to make an amendment to the Controlled Substances Act (CSA) for hemp and CBD production. The DEA’s recent proposal has caused quite a ruckus in the CBD industry. CBD companies fear that the new rules will negatively impact the ways in which the CBD industry operates in today’s market. Want the details and information about what changes the DEA is trying to implement, why, and how it would likely effect CBD businesses in America? Stay tuned for Seabedee’s tell-all on what hemp and CBD laws have been amended as of 09/2020 in the United States.  

The 2 Major Amendments To The CSA, & What That Means For CBD:  

1. The DEA altered the definitions of tetrahydrocannabinols (THC) and marihuana extracts. In terms of THC, the DEA added additional jargon to the definition, now specifying that THC excludes, “any material, compound, mixture, or preparation that falls within the definition of hemp” and that all THC that is “synthetically derived  is assumed to be a schedule 1 controlled substance. The DEA also emphasized that legal hemp cannot be considered a “marihuana extract” anymore. 

What does this mean for the CBD market?: Essentially, this new rule reiterates that hemp-derived delta-9 THC, when naturally occurring and not exceeding a THC content of 0.3%, is legal. However, it leaves room for ambiguity by stating that synthetically derived THC be considered a schedule 1 controlled substance. This strikes uncertainty about whether “synthetically derived” means a man-made chemical, and whether or not that definition would include the isomerization process by which someone isomerizes one organic molecule to another. This isomerization process is utilized to transform CBD into the increasingly popular cannabinoid, delta-8 THC. Delta-8 THC has become a “legal loophole” in the hemp and CBD industry, making it a sought after cannabinoid for its “high” effect that is said to be much less intoxicating than delta-9 THC. If delta-8 were to be considered synthetically derived, then it would likely be considered illegal and put a lot of CBD companies in jeopardy.  

2. Removal of FDA-approved CBD-based drugs from control in schedule V. This means that Epidiolex, and any generic form of CBD-based medication that has been approved by the FDA will no longer be controlled under the schedule V category, and will not require a permit for imports and exports of this medication. 

What does this mean for the CBD market?: This means that any FDA-approved, CBD drug product that is derived from cannabis and contains no more than 0.1% residual THC content, is no longer classified under schedule V of the CSA. This means it is no longer considered even the lowest tier of controlled substances. 

Do you have an opinion on these matters? The public is open to commentary on the proposed amendments until October 20, 2o2o, just click here to leave your comment! And in the mean time, head on over to Seabedee’s online store, where we have all the A-grade CBD products you need to stay calm and collected through these uncertain times. Check out our popular Calming Blend CBD Oil Today!

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