In an unexpected win for the embattled US hemp industry, the 4th Circuit Court of Appeals has ruled that an intoxicating hemp-derived products, THC-O, is classified as legal under the 2018 Farm Bill.
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As the US hemp industry continues its battle against both the US cannabis industry and growing legislation aimed at banning intoxicating or synthetic hemp substances, this groundbreaking decision will come as a much-needed reprieve for many businesses.
On September 04, the court effectively challenged the Drug Enforcement Administration’s (DEA) assertions that THC-O was an illegal substance, stating that its arguments ‘lack the power to persuade’.
The case in question involved Tonya Anderston, who was let go from her job at Diambondback Investment Group after failing two drug tests which found THC in her system.
Anderson, who was using hemp-derived products, including CBD oil and products containing THC-O to treat anxiety and muscle spasms, argued that she was wrongfully terminated because the products she used were legal.
While Anderson ultimately lost the case and failed to have her termination overturned, the court ruled definitively that THC-O and other synthetically derived hemp substances were legal under current federal law.
According to the ruling, THC-O is syntherically derived and does not naturally occur in the cannabis plant. In a 2023 letter and its Interim Final Rule, the DEA argues that THC-O is therefore a Schedule I controlled substance (alongside cocaine and heroin), because it is not naturally found in hemp.
However, in a surprise ruling, the court cited a previous ruling from the 9th Circuit Court that synthetic cannabinoids still fall under the definition of hemp as long as they are originally derived from the plant and contain less than 0.3% delta-9 THC on a dry weight basis.
“[W]e reject Diamondback’s contention that the DEA’s interim final rule or letter mandates a finding that THC-O is illegal.”
With such a clear rebuke of the DEA, the decision sends a clear signal that Federal Courts will refer to the simple language of the 2018 Farm Bill, not the DEA’s interpretation, when dealing with synthetic cannabinoid cases.
Despite the positive development for hemp businesses, the new Farm Bill, currently making its way through the legislative process, includes the ‘Mary Miller’ amendment.
This amendment is designed to regulate the flourishing intoxicating hemp industry, but would also have a major impact on the country’s hemp and CBD industries, making 90-95% of hemp products on the market, including FDA-approved animal feed, banned.
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