Exclusive: Alcohol Industry Tells Congress Its Model Can Support Hemp Regulation

The House of Representatives moved its version of the 2026 Farm Bill forward without addressing the federal hemp THC ban scheduled to take effect in November, leaving manufacturers, retailers, and state regulators staring down a deadline that could upend a fast‑growing beverage category. The omission surprised many in the industry who had hoped lawmakers would use the bill to replace the ban with a workable regulatory framework.

The ban was tucked into a federal appropriations package last November. It rewrites the definition of legal hemp to include total THC, including THCA, and removes federal protection for converted cannabinoids. Once it takes effect, many hemp‑derived beverages that are legal under state law will become illegal at the federal level, even in states that have created licensing and testing requirements.

The House bill’s silence on the issue drew a sharp response from the Wine and Spirits Wholesalers of America, which has been urging Congress to regulate hemp THC drinks rather than prohibit them.

Industry Warns A Ban Will Not Stop Demand

WSWA executive vice president Dawson Hobbs said the biggest misconception in Washington is the idea that a federal ban will make the products disappear. He told me consumer demand is already too strong for that.

“When the ban goes into effect in November, it will not ban consumer demand, and so consumers will seek out products that they believe will give them the same impacts as they are currently getting from hemp-derived beverages,” Hobbs said in a Zoom interview with IgniteIt. “But those products will not be regulated. They will not be federally legal, and so it’s going to push them into the shadows and into the black market.”

Hobbs pointed to the rapid growth of the category in states that allow hemp THC drinks. Retailers tell the association these beverages are among their fastest‑growing product lines, and many consumers are still discovering them. Without federal standards, he said, demand will shift to unregulated online sellers and operators willing to ignore the law.

Alcohol Sector Says Its Model Can Support Hemp Regulation

WSWA has been making the case that Congress does not need to reinvent the wheel. Hobbs said the goals for hemp THC beverages mirror the goals that have guided alcohol regulation for nearly a century: keep products away from minors, ensure accurate labeling, and require safe manufacturing.

“We can adapt those same structures that have achieved those goals for alcohol and apply them to the hemp beverages and thus keep our children, our communities, our roads, and our consumers safe,” he said.

Hobbs added that a durable federal framework would include federal and state licensing for producers, distributors, and retailers, along with tax structures that support traceability and enforcement. He also emphasized the need for compliance checks to verify potency and age‑restricted sales.

States Face A Collision With Federal Law

If Congress does nothing before November, the conflict between state and federal rules will land squarely on businesses and regulators. Many states have already created pathways for hemp THC beverages to be sold through alcohol channels or other licensed systems. Those programs would immediately clash with federal law.

“Many states that have explicitly allowed these products within the alcohol channel or others will now be in conflict with federal law,” Hobbs said. 

Businesses would face the same choice. 

“Will they operate in accordance with their state law and violate federal law, or will they withdraw from the marketplace. I think many will withdraw, and only those that are willing to push the limits of allowability will be left in the market.”

Hobbs said WSWA plans to continue educating lawmakers about consumer demand, the risks of an unregulated market, and the need for a federal structure that supports state‑level oversight. The association is urging both chambers to act before the ban takes effect in November.