The cannabis industry has faced a dramatic shift over the past 48 hours, triggered largely by new federal legislative action in the United States. Congress recently passed the FY26 Agriculture Appropriations Bill, which redefines hemp and sharply restricts cannabinoids by banning products with more than 0.4 milligrams of THC per container. This regulatory move has sent shockwaves through the CBD and hemp markets. Industry groups warn that 95 percent of current hemp extract products may now be classified as Schedule I narcotics if Congress does not revise the law, potentially leaving millions of dollars in unsold inventory and forcing many businesses to the brink of closure. There is an urgent call for Congress to implement a one-year moratorium on the effective date of the new ban while lawmakers and industry meet to determine a responsible regulatory framework. If no action is taken, the supply chain, especially grain farming and cannabinoid-supply operators, faces widespread disruption and broken contracts.

Amid this uncertainty, a trend toward industry unity is emerging. Key cannabis and hemp organizations have begun unprecedented dialogues, seeking to align around unified standards for safety, compliance, and labeling. This shift is seen as essential to presenting lawmakers with a coherent regulatory proposal that supports both the medical and adult-use markets. Industry leaders are increasingly advocating for science-based, transparent policy, and are calling for robust federal regulation rather than prohibition.

Despite regulatory turmoil, major deals continue. TerrAscend, a North American cannabis company, signed an exclusive licensing agreement this week with Tyson 2.0, the brand founded by Mike Tyson, to launch flower, vapes, and edibles in Maryland and Pennsylvania. The products will be available early next year, indicating companies remain committed to expansion even amid federal uncertainty.

In consumer markets, Green Wednesday, the cannabis equivalent of Black Friday, saw deep discounts and promotions at dispensaries, highlighting continued demand and price competition even as regulatory stress persists.

Compared to last week, the most significant changes are increased regulatory risk, the threat of product bans, and hastening consolidation among producers. The current crisis is prompting a more organized response from industry leaders and advocacy groups, focused on unifying standards, policy engagement, and renewed calls for clarity in federal cannabis regulation.

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This content was created in partnership and with the help of Artificial Intelligence AI