US Narcotics Regulator: “Hemp is not a controlled substance”

An Aug. 26 statement from the US Drug Enforcement Administration (DEA) cited the 2018 Farm Bill. The agency clarified that "certain forms of cannabis do not require DEA registration or licensing for cultivation or manufacture."

Hemp has been the subject of regulation in the United States of America for more than six months with the approval of the Farm Bill. With the entry into force of this legal framework, Federal Controlled Substance and Drug Enforcement authorities have updated their guidelines to remind law enforcement officials that hemp is no longer a controlled substance in America.

The agency clarified that “hemp preparations, including hemp plants and cannabidiol (CBD), at the level below or below the delta-9 THC threshold of 0,3%, are not controlled substances.”

It was not this DEA notice that changed the law or legalized hemp. This change already took place last year, but the agency had not yet disclosed, through its regular newsletters, that hemp was already legal. The move reassured some hemp companies, which had been battling legal confusion over the plant's status.

Clarity for service providers

Cannareporter had already reported the request for clarification regarding banking procedures with hemp farmers and processors by financial institutions. These DEA guidelines on hemp should help clarify the framework for law enforcement and will allow for greater trust between financial institutions and hemp companies and organizations. Some banks have avoided doing business with hemp companies due to a lack of clarity regarding the legal framework for the culture.

Despite the announcement by the DEA, another federal agency, the Food and Drug Administration (FDA) is still drafting regulations for cosmetics, dietary supplements, foods and food additives, following the Farm Bill. The US Hemp Industries Association (HIA) has advised the FDA that the existing rules for these products be simply expanded to include hemp extracts.