ONE HEMP Hails Long Overdue Congressional Action Toward the Regulation of CBD as a Dietary Supplement

Rhea-AI Summary

ONE HEMP, a coalition of CBD industry leaders, has welcomed the introduction of the Cannabinoid Safety and Regulation Act (CSRA) by Senator Ron Wyden. This bill is seen as a critical step towards regulating CBD as a dietary supplement, addressing the regulatory gap left by the 2018 Farm Bill. The legislation aims to establish FDA-level standards for CBD products, ensuring consumer safety and industry growth.

The move comes amid concerns over intoxicating synthetic cannabinoids being marketed as CBD, leading to restrictive state actions. The CSRA is expected to set national standards for CBD product manufacture and sale, differentiating between synthetic, intoxicating CBD and non-intoxicating, full-spectrum hemp-derived CBD. Industry leaders, including Charlotte's Web (TSX: CWEB) (OTCQX: CWBHF), have been instrumental in providing expertise to policymakers throughout this process.

Positive

• Introduction of the Cannabinoid Safety and Regulation Act (CSRA) by Senator Ron Wyden, potentially leading to federal regulation of CBD as a dietary supplement
• Potential establishment of national standards for CBD product manufacture and sale in interstate commerce
• Industry collaboration through ONE HEMP to provide expertise and support to policymakers

Negative

• Current regulatory vacuum has led to the proliferation of intoxicating synthetic cannabinoid products marketed as CBD
• Recent state-level restrictions, such as California's executive action, limiting access to non-intoxicating CBD products
• Potential elimination of access to full-spectrum hemp extract products for millions of consumers due to state-level restrictions

Calls Wyden Senate bill introduction a 'critical step'

WASHINGTON, DC, Oct. 1, 2024 /PRNewswire/ - Today ONE HEMP – a coalition of industry leaders committed to advancing regulatory standards for hemp-derived cannabinoid (CBD) products – hailed long overdue Congressional action toward the regulation of CBD as a dietary supplement with the introduction of the Cannabinoid Safety and Regulation Act (CSRA) by Senator Ron Wyden (OR). This legislative milestone builds upon the collaborative work between industry leaders, including Charlotte's Web (TSX: CWEB) (OTCQX: CWBHF), which has been at the forefront of advancing FDA-level regulatory standards for more than a decade. 

This action is a recognition of the need for Congress to complete what it intended in the overwhelmingly bipartisan 2018 Farm Bill, which de-scheduled CBD in all 50 states, but due to jurisdictional reasons failed to ensure that CBD products would be regulated by the FDA as dietary supplements.

"ONE HEMP has been deeply committed to a bipartisan legislative process and has worked closely with Congressional leaders on both sides of the political aisle to provide scientific and market expertise," said Kelly D. Fair, ONE HEMP counsel and Partner at Dentons US. "The Wyden bill marks the beginning of a process that will ultimately lead to an approach that will promote a vibrant CBD industry and ensure access for millions of consumers to the highest quality and safest CBD products." 

This legislative milestone builds upon the collaborative work between industry leaders at the forefront of advancing federal-level regulatory standards.  

"The introduction of the CSRA is a critical step for the CBD industry and a testament to the collaborative efforts of ONE HEMP – along with the Charlotte's web team – to engage policymakers and the FDA," said Bill Morachnick, Chief Executive Officer of Charlotte's Web. "Charlotte's Web is proud to be joined together with other CBD industry leaders as part of ONE HEMP to provide the support Congress needs to ensure the best possible path forward for our industry, and, more importantly, the millions of consumers who rely on our products."

"We commend Senator Wyden for his leadership and continued commitment to addressing the regulatory challenges facing the hemp industry. From the beginning, he has recognized the need for thoughtful solutions that ensure consumer safety and industry growth. The Cannabinoid Safety and Regulation Act demonstrates a thorough understanding of the complex issues that must be resolved for a comprehensive regulatory framework. We look forward to continuing to work with policymakers on both sides of the aisle to help move this process forward," said Mr. Pulak Sharma and Dr. Priyanka Sharma with Kazmira.

"CBDistillery is proud to be a part of ONE HEMP and to work collaboratively with other responsible hemp companies to provide guidance.  This is a great first step in providing clarity for consumers, raising the bar on safety and quality of products and helping foster a robust and vibrant hemp industry," said Bill Stoufer, President of CBDistillery.

This Congressional step comes at a critical time, as the vacuum of federal regulation in the wake of the 2018 Farm Bill has been filled by intoxicating hemp-derived synthetic cannabinoid products being presented to consumers in the market as CBD, leading states to act – and often unduly capturing non-intoxicating CBD products. Most recently, California Governor Gavin Newsom took an executive action that imposed a blanket restriction on the sale of full-spectrum hemp extract products that contain even trace amounts of THC. This move has raised alarm across the hemp industry, as it could eliminate access to safe, non-intoxicating CBD products for over 5 million Californians who rely on them for wellness and therapeutic purposes.

While federal legislation will not preempt state law, it will set a national standard that will guide the manufacture and sale of CBD products in interstate commerce, and offer an approach for differentiating between synthetic, intoxicating CBD, and full-spectrum hemp-derived non-intoxicating CBD that 45 million consumers, including families, seniors, veterans, athletes, and more, rely on every day.

In addition to being a significant regulatory milestone, ONE HEMP views this announcement as validation of its engagement with Congress, and a call to action for industry stakeholders to join the effort. As the legislative process moves forward, these organizations will continue to advocate for the swift passage of the bill, engaging additional partners and stakeholders to strengthen the coalition and build widespread support for the regulatory framework.

About ONE HEMP

ONE HEMP is an industry working group dedicated to advancing regulatory standards for hemp-derived cannabinoid products. Comprising leading voices in the CBD sector, the group serves as a scientific resource for policymakers and seeks to promote consumer safety and industry innovation.  The group has enlisted some of the world's foremost cannabinoid researchers and toxicologists, ensuring that their approach is firmly rooted in robust scientific research and a deep understanding of CBD's safety profile. ONE HEMP's founding mission is to demand regulatory standards by Congress and the FDA that treat CBD products as dietary supplements and serve as a leading scientific resource to policymakers to ensure consumer safety and consistency. ONE HEMP aims to set industry benchmarks, nurturing trust and innovation in the CBD sector.  Industry leaders that have joined ONE HEMP include – among others – Charlotte's Web, Kazmira, and CBDistillery. Taken together these leaders represent some of the largest providers of CBD products. To learn more about ONE HEMP, contact Kelly D. Fair at Kelly.fair@dentons.com.

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SOURCE ONE HEMP

FAQ

What is the Cannabinoid Safety and Regulation Act (CSRA) and how does it affect CWBHF stock?

The CSRA is a bill introduced by Senator Ron Wyden to regulate CBD as a dietary supplement. While its direct impact on CWBHF stock is not specified, it could potentially benefit the company by establishing clear regulatory standards for CBD products, which is Charlotte's Web's main business.

How might the CSRA impact the CBD industry and CWBHF's market position?

The CSRA aims to set national standards for CBD product manufacture and sale, which could provide clarity and stability for the industry. This may positively affect CWBHF's market position by differentiating legitimate CBD products from synthetic, intoxicating alternatives.

What challenges is the CBD industry facing that the CSRA aims to address?

The CBD industry is currently facing challenges such as the proliferation of intoxicating synthetic cannabinoids marketed as CBD and restrictive state-level actions. The CSRA aims to establish federal regulations to address these issues, potentially benefiting companies like CWBHF.

How is Charlotte's Web (CWBHF) involved in the push for CBD regulation?

Charlotte's Web (CWBHF) is part of the ONE HEMP coalition, which has been working closely with policymakers to provide scientific and market expertise in the development of CBD regulations, including support for the CSRA.