As the hemp beverage industry rapidly expands across the United States, policymakers are at a crossroads: follow the facts and support innovation—or give in to hysteria and overregulate a federally legal industry. Two states—Tennessee and Ohio—illustrate this divide.
Tennessee: Smart, Structured, and Responsible
Tennessee’s HB 1376, signed by Gov. Bill Lee and taking effect January 1, 2026, is a blueprint for smart hemp regulation. It places hemp-derived cannabinoid products (HDCPs) like low-dose THC beverages under the jurisdiction of the Tennessee Alcoholic Beverage Commission and Department of Revenue, ensuring compliance without chaos.
Key provisions include:
- 21+ sales through licensed retailers, bars, and restaurants only.
- No online or gas station sales.
- A $2,500 supplier license for out-of-state manufacturers.
- A three-tier distribution model modeled on the alcohol industry.
- Modest but enforceable taxes to fund regulation and oversight.
Ohio: A Pattern of Overreach—But No Action
In Ohio, several bills—including HB 168, SB 278, and HB 160—have been introduced to restrict or outright ban intoxicating hemp. These proposals include:
- Arbitrarily redefining hemp as marijuana based on microdose THC thresholds.
- Forcing hemp businesses into the marijuana dispensary channel—federally illegal territory.
- Imposing licensing bottlenecks and caps that would stifle innovation and limit consumer access.
Yet despite months of debate and industry resistance, none of these measures passed before the Ohio House adjourned for summer recess. That silence says something loud and clear: there is no hemp crisis.
Texas and Congress also hit pause on prohibition
Ohio isn’t alone in walking back hemp hysteria. Texas Gov. Greg Abbott vetoed a proposed ban on intoxicating hemp, citing concerns about limiting business growth. And at the federal level, Congress passed the much-touted “Big Beautiful Bill” without including any hemp bans—not for intoxicating hemp, not for THCA flower, and not for synthetics.
If intoxicating hemp posed a national emergency, these policymakers would have acted. They didn’t.
Meanwhile, the Market Speaks Loud and Clear
Earlier this month, I attended the Hemp Beverage Expo in Atlanta, where hundreds of entrepreneurs, alcohol distributors, attorneys, accountants, investors, flavor houses and bottling companies from across the country gathered to build the next chapter in cannabis innovation. Hemp-derived THC beverages are a hot commodity. Retailers are eager. Consumers are responding. And capital is flowing.
The regulatory conversation must catch up with the commercial reality.
Ohio (and Others): Time to Get the Message
Rational regulation is not only possible—it’s essential. States should be:
- Setting clear age restrictions.
- Requiring product testing, labeling, and packaging standards.
- Enabling compliant supply chains without redefining hemp as marijuana.
- Supporting tax revenue collection and enforcement.
The federal definition of hemp remains the law of the land. It’s time Ohio and other states stop trying to rewrite it in fear. There is a path forward, and Tennessee is already walking it.
Let’s move beyond panic. Let’s promote safety, transparency and growth. Let’s stop the hemp hysteria—and let hemp thrive.
