Restaurant Industry Urges Congress to Delay Hemp-Derived THC Beverage Ban
The National Restaurant Association (NRA) has called on Congress to delay an impending federal ban on hemp-derived tetrahydrocannabinol (THC) beverages (and other products) and to establish a national regulatory framework governing such products.
The 2018 Farm Bill legalized the sale of hemp products containing no more than 0.3 percent delta-9 THC—the main psychoactive cannabinoid in the Cannabis sativa plant—allowing a “legal” THC edible and beverage market to emerge and consumer demand to surge under this regulatory gray area. This “loophole” is set to close in November.
NRA Calls for Regulation, Not Prohibition
In a June 17 letter to Congressional leaders, NRA urged lawmakers to postpone implementation of the ban for two years while developing federal standards for the growing market of low-dose hemp-derived THC beverages.
NRA said it supports a regulated market for hemp-derived THC beverages consumed in restaurants, built on federal requirements for age verification, production and quality controls, labeling and marketing standards, dosing disclosures, and impairment-related safeguards. The proposed framework would establish baseline federal requirements while allowing state and local governments to implement additional rules, similar to alcohol regulation.
"Time is short—the existing market will shut down in November due to legislation enacted last year," the letter states. "The National Restaurant Association urges Congress to act now: delay implementation and commit to a deliberate, safety-focused regulatory process this emerging market deserves."
Federal Loophole Set to Close
The 2018 Farm Bill had allowed for hemp-derived products containing THC to be sold, given that the THC used was extracted from industrial hemp containing less than 0.3 percent THC content. This is the same loophole that allowed products containing cannabidiol (CBD)—a non-psychoactive cannabinoid—to be sold. This loophole was closed as part of the government shutdown reconciliation bill signed on November 12, 2025.
Could Hemp-Derived THC Prohibition Hurt Restaurant Industry?
NRA cited its own research showing that 5 percent of restaurants serving alcohol currently offer hemp-derived THC beverages, while 26 percent of all restaurants expressed interest in offering the products under a clear regulatory framework. NRA estimated the potential market opportunity at $1.6 billion annually.
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NRA also argued that a federal ban could negatively affect restaurant operators facing tight profit margins. Citing industry data, the organization said the median pre-tax profit margin for full-service restaurants fell to 2.8 percent in 2024, compared with 4 percent in 2019, and that 42 percent of operators reported no profit last year.
In its letter, NRA asserted that an abrupt prohibition would remove a revenue source for some operators, despite consumer demand. The organization said a two-year delay would allow Congress to develop a national regulatory approach for hemp-derived THC products while providing businesses with greater certainty.
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