In an unprecedented move, a congressional committee held a hearing to examine the impact of the Food and Drug Administration’s (FDA) inaction on developing regulations for the sale of hemp-derived CBD as food items or dietary supplements. The House Oversight and Accountability Subcommittee on Health Care and Financial Services titled the hearing “Hemp in the Modern World: The Years-long Wait for FDA Action.”
Impact of FDA’s Inaction on the Hemp Industry
The lack of clear regulations from the FDA has caused significant turmoil in the U.S. hemp industry. The industry is unique in its plea to Congress for regulation. A rational, sensible regulatory framework could provide a much-needed financial boost to the nation’s farmers and small businesses, acting as an economic stimulus package without requiring any funding from the American taxpayer.
The Need for a Broad Regulatory Framework
The regulation of hemp-derived products is complex and nuanced, and state regulators understand those nuances better than anyone. A broad regulatory framework is urgently needed to address hemp-derived cannabinoid products. Congress has an opportunity to learn from the approaches that states have taken to set a thoughtful and comprehensive federal regulatory framework.
Plunge of the Hemp Industry and the Role of FDA
The hemp industry experienced a significant downturn in 2022, largely attributed to the FDA’s refusal to issue regulations for CBD products. Bipartisan congressional lawmakers have refiled a pair of bills meant to provide a pathway for the regulation of hemp derivatives like CBD as dietary supplements and food and beverage additives.
Future of CBD Regulations & Its Impact on Investors
The Hemp Access and Consumer Safety Act, which aims to remove regulatory barriers that the FDA claims prevent it from allowing CBD sales, has been reintroduced. The Act would exempt hemp, hemp-derived cannabidiol, or any other ingredient derived from hemp from certain federal restrictions, while allowing officials to enact labeling and packaging rules. This development could open up new investment opportunities in the hemp industry.
Your Guide to Investment Opportunities
For those interested in exploring these new investment opportunities further, our sister site, The Wealthy VC, provides in-depth analysis and insights into the world of venture capital and investment. The Wealthy VC is dedicated to helping investors navigate the complex landscape of investing in emerging industries similar to The Cannabis Investor with hemp and CBD. With expert advice and up-to-date news, The Wealthy VC is the perfect companion for any investor looking to capitalize on the evolving landscape of the stock market industry as a whole.
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