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November 17, 2025
Built by a former cannabis regulator, Policy, Decoded helps operators read the policy terrain before it shifts beneath their feet.
Congress changed the federal definition of hemp in the shutdown deal and handed the next year of decisions to the states. Kentucky is already defending its farm economy, Michigan is weighing whether to keep building a beverage category pushed to the edge of viability, and Tennessee and Rhode Island are choosing to pause while they study the language and wait for guidance. Global markets are moving in their own direction as Brazil considers higher national THC limits and signals a widening gap between American policy and international norms.
Our emergency episode of The Hybrid with Pam Epstein breaks down how shutdown politics delivered this moment and why the next 12 months will be shaped by steady work inside state agencies, not the drama of Washington.
Today’s edition is supported by Masters in Marketing and SuperhumanAI, with a reminder to subscribe to The Hybrid and stay close to THC Group for the day-to-day policy intelligence that keeps you ahead of the next shift.
🥤 Federal action sets the stage for a year of state decisions
🌾 Governors and regulators shape the next chapter
🎖️ Veterans, farmers, and operators watch the ground move
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📌 What Happened: Congress changed the federal definition of hemp in the shutdown deal, and the weight of that decision is already landing in state offices. A Wisconsin analysis captured the moment with a simple line that now defines the week ahead: the federal move hands the problem to the states. Kentucky’s governor responded by calling hemp an important part of his state’s farm economy and by saying the rules should be written at home, not in Washington. Michigan lawmakers spent the fall shaping a plan to let low dose hemp drinks move into mainstream retail, and they now have to decide whether to keep working on a category that federal law pushed to the edge of viability. Tennessee and Rhode Island adopted quieter positions and told their operators that current rules stay in place while they study the federal language and wait for guidance from the agencies responsible for carrying it forward. Researchers in Brazil urged their government to raise its national THC limit for hemp to one percent to stay competitive, which shows how far global thinking on hemp has drifted from the new American threshold.
💡 Why It Matters: The next year will define which hemp products stay on shelves, which disappear, and which shift into new channels built for durability rather than speed. Kentucky is preparing to protect a longstanding farm economy, while Michigan is wrestling with the future of a category it viewed as a stabilizing force for an oversupplied cannabis market. Tennessee and Rhode Island seem to be suggesting the kind of cautious review that precedes long stretches of technical work inside agencies and legislative committees. That work becomes harder because consumer demand keeps evolving, and nightlife concepts like the “Cali sober” bar in New Orleans show how quickly low dose THC has settled into everyday use. Global moves toward higher plant limits and more flexible frameworks add another layer of pressure on states to produce rules that are credible, enforceable, and economically viable. Leaders in this space now need a clear map of how their products fit into these different models and how to prepare for a year of uneven and sometimes conflicting state decisions.
🧠 THC Group Take: The next year will test how well these industries (hemp, marijuana, alcohol, etc.) understand the slow, imperfect work of making policy stronger than the statute that created it. Congress set a new boundary and left everyone else to clean up the details. That part is actually familiar to your state regulators dealing with this across the country. The people in those offices want steadiness. They want evidence that comes without theatrics. They want operators who show up with a sense of responsibility for the communities they serve, not just a list of demands.
This is a moment to take a breath and look honestly at what you sell, who relies on it, and which parts of your catalog can withstand a definition this tight. That work is hard because it asks people to see their businesses the way a regulator sees them: as pieces of a larger ecosystem with tax rules, health departments, zoning boards, and real-world enforcement limits. When you do that, you start to see where the pressure points are and where your state is likely to bend or hold firm during the year ahead.
There is also a political truth sitting underneath all of this. Legislators respond to stories tied to their own communities. Farmers in Kentucky. Nightlife workers in New Orleans. Veterans in every state. People who are navigating pain relief, mental health, or addiction recovery. Those voices help policymakers understand that this is not an abstract fight over milligrams. It is a set of decisions about livelihoods, public health, and whether the people who have done this work responsibly get a fair chance to stay in the light.
The operators who handle this moment well will not be the ones who yell the loudest. They will be the ones who stay close to the facts, meet with their agencies before panic sets in, and help build a path that is strong enough to carry an industry rather than a single product category. This is long, patient work. It is also the kind of work that shapes what the market looks like long after the federal window closes. That is where the opportunity sits, and the people who keep their heads and stay present with the real-world complexity will end up helping write the next version of this system.
Fast-moving headlines, flagged for what matters.
Kentucky’s governor publicly pushed back on the new federal hemp THC ban by calling hemp an important state industry that deserves regulation through Kentucky’s own program rather than a blanket prohibition. He highlighted the state’s history with hemp and pointed to the economic footprint built since 2018, including farmers who shifted away from tobacco on the promise of a stable federal framework. His comments signal that at least some governors intend to defend their hemp economies instead of accepting Washington’s one year clock as the final word. This positions Kentucky as an early voice in a coming fight over who gets to shape the future of hemp, and other states with real agricultural stakes may follow. (Marijuana Moment)
Michigan lawmakers had been crafting bipartisan legislation to let low dose THC hemp drinks and similar products move into liquor stores, bars, and other mainstream venues instead of staying locked inside marijuana dispensaries. The goal was to ease pressure on a saturated licensed cannabis market that now faces a new 24 percent wholesale tax and needs additional channels to keep operators afloat. The shutdown deal in Washington, with its strict new federal cap on total THC per package and one year adjustment window, now threatens to erase much of the category Michigan hoped to lean on. Sponsors are split between those who want to keep building the state framework on the bet that Congress walks back the ban and those who question investing in a lane federal law has already tried to close. Other states eyeing hemp beverages as a policy release valve should treat Michigan as an early case study in how unstable federal rules can undercut even well designed state fixes. (Michigan Public)
Tennessee agriculture officials say the state’s hemp program will remain unchanged for now, despite the new federal crackdown on intoxicating hemp products in the shutdown bill. The department is reviewing the federal language and says it will wait for formal guidance from Washington before deciding whether any adjustments to state rules are necessary. Regulators also point out that Tennessee already passed new rules on hemp-derived products earlier this year, with the Alcoholic Beverage Commission set to take over oversight of the sector in 2026 while some “legacy license” shops keep operating under older rules. For operators and investors, it is a useful example of a state that has its own hemp roadmap and is choosing to pause rather than react immediately, which hints at how other Southern and border states with existing frameworks may behave in the coming months. (WSMV)
Rhode Island hemp regulators are publicly acknowledging the new federal crackdown on intoxicating hemp products and beginning to assess what it means for the state’s growers, processors, and retailers. Officials say they are reviewing the federal language and comparing it to Rhode Island’s own hemp framework before deciding whether any immediate enforcement changes or statutory fixes are needed. That measured approach gives local businesses a short window to take stock of their product lines, THC levels, and reliance on the old federal definition before the hammer fully drops. For operators in other smaller or mid-tier states, this is an early signal that regulators are unlikely to ignore the federal shift, even if they move in stages rather than snapping instantly to Washington’s new standard. (WPRI)
New York’s Office of Cannabis Management has adopted new rules that finally allow licensed dispensaries to offer discounts, coupons, loyalty programs, and bundled deals, including specific price breaks for veterans and seniors. Retailers had been barred from using basic promotional tools that every other consumer sector takes for granted, even as unlicensed shops and out-of-state competitors freely offered “deals” to pull customers away. Industry groups see the change as a long-overdue step toward letting the legal market act like real retail, build loyalty with key groups, and chip away at entrenched illicit operators. The move also gives New York brands and operators a new way to signal support for veterans at the same time federal leaders are blocking VA doctors from recommending cannabis, which sharpens the contrast between state-level normalization and Washington’s hesitation. For executives in other regulated markets, it is a reminder that marketing rules can either suffocate legal channels or become one of the easiest levers to improve competitiveness without rewriting core statutes. (stupidDOPE)
Sen. Jeff Merkley is calling GOP leaders “just plain cruel” after they blocked his amendment that would have allowed VA doctors to recommend medical cannabis to veterans in legal states. His language had already cleared both chambers in earlier forms, but Republican leadership kept it out of the final spending bill that reopened the government, leaving current VA restrictions firmly in place. Advocates point out that the measure is revenue neutral, broadly popular with veterans, and in line with state medical laws, which makes its omission a deliberate policy choice rather than a drafting casualty. The episode signals that even low risk, bipartisan cannabis reforms can still die quietly in conference when party leadership decides they are expendable. For operators and investors, that is a reminder that federal medical access for veterans remains a political live wire, not an inevitable growth channel. (Marijuana Moment)
After years of vetoes from outgoing Gov. Glenn Youngkin, Virginia is finally on track to launch a regulated adult-use cannabis market following Democrat Abigail Spanberger’s election as governor. Lawmakers say her pledge to sign retail legislation removes the biggest obstacle that has kept sales in limbo since the state legalized possession and home cultivation in 2021. The Joint Commission on the Future of Cannabis Sales will unveil its finalized retail proposal on Dec. 2, with a bill expected in the 2026 session and sales potentially starting as early as fall 2026 if it passes. The framework builds on previously vetoed legislation that paired licensing with equity-oriented microbusiness tiers and dedicated tax revenue for education, community reinvestment, and treatment. For operators and investors, this is a reminder that executive elections can flip a market from “permanently stalled” to “on the clock” overnight, especially in populous East Coast states that already have legalization on the books. (Virginia Mercury)
Prosecutors in Hennepin County charged Christian Schenk, co-founder of Crooked Beverage Company, with theft by swindle after he allegedly diverted about seventy six thousand dollars from the hemp-derived THC startup he launched with former Minnesota House Majority Leader Ryan Winkler. The complaint accuses Schenk of using company accounts for personal purchases at luxury retailers and withdrawing nearly forty eight thousand dollars after resigning from the company. Investigators also say Schenk fabricated emails that impersonated prominent attorney Chris Madel to reassure partners about a court ordered garnishment tied to more than three hundred thousand dollars in unpaid support obligations. Crooked entered Minnesota’s emerging THC beverage market with heavy messaging on safety and compliance, which puts sharper public focus on the alleged conduct. For operators and investors, the case is a reminder that corporate controls and clean governance matter as much as product compliance in a category that already draws heightened regulatory scrutiny. (MinneapoliMedia)
Green Thumb Industries asked an Illinois state court to permanently toss a proposed class action that accuses the company of overstating THC potency on product labels. The suit claims consumers paid a premium for “high THC” products that did not match their advertised strength, while the company argues the complaint fails to show real injury or a reliable testing basis for those claims. The case sits inside a growing wave of potency and labeling lawsuits against major operators, where plaintiffs treat cannabis like any other consumer packaged good for fraud and misrepresentation purposes. Executives should read this as a warning that lab relationships, COA practices, and marketing language around potency are now live targets for the plaintiff bar in any mature market. (Law360)
Spain took a significant step toward a national medical cannabis framework by advancing rules that would formalize pharmaceutical-grade cultivation, processing, and prescribing pathways. The plan centers on tightly controlled production for specific medical indications and positions Spain closer to Germany’s model than the fragmented pilot programs seen elsewhere in Europe. Domestic producers view this as a long-delayed signal that Spain intends to build a regulated medical market instead of relying on imports and informal channels. For global operators, it marks another major EU jurisdiction moving toward standardized medical cannabis, which reshapes competitive dynamics for GMP suppliers and cross-border distributors. (MMJDaily)
Uber has filed a lobbying registration in Alberta to discuss how its apps could handle regulated products such as alcohol and cannabis with senior provincial officials and the gaming, liquor, and cannabis regulator. The company already facilitates cannabis orders in Ontario and British Columbia through Uber Eats, where customers place orders in the app and licensed retailers handle delivery and ID checks. In public comments, Uber says it is not pushing a specific rule change yet and is instead positioning itself to engage if the government opens up cannabis delivery rules. For operators and investors, this is another signal that large consumer platforms intend to sit at the front door of legal cannabis commerce while leaving licensees to carry the regulatory load, a model that could spread quickly to other jurisdictions once lawmakers grow comfortable with it. (Stratcann)
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From the hearing room to the comment section — we’re watching it all.
🏈 Former NFL player Kyle Turley blasted the federal hemp crackdown as a “betrayal,” warning outside the White House that the rider threatens hundreds of thousands of jobs, rural economies, and the plant-based products he credits with helping him walk away from opioids. He urged Trump to champion the industry instead of signing it off the field and framed the ban as a political move that punishes responsible operators along with the bad actors Congress claims to target. (NewsNation)
🍹 In New Orleans, a new alcohol-free bar is opening with zero-proof cocktails and hemp-derived THC drinks on a strip that usually belongs to frozen daiquiris and cheap beer, offering a “cali sober” nightlife option just as Congress moves to crack down on the very products that make its menu interesting. It is a neat snapshot of where the culture already is on THC beverages while federal law tries to drag the supply back a decade. (Nola.com)
🎬 A new documentary titled “Kiss My Grass” shines a light on Black women in cannabis, foregrounding their experiences with stigma, criminalization, and the work of building careers in a still hostile policy environment. Ebony’s coverage turns what could have been a niche industry story into a broader reflection on who carries the risks and who gets invited into the rooms where cannabis laws and fortunes are made. (Ebony)