A major federal change is on the horizon for hemp-derived THC products. Unless Congress intervenes, new federal language scheduled to take effect on November 12, 2026, would effectively ban intoxicating hemp products and beverages from the U.S. market—and convenience retailers have a lot at stake if the ban comes to fruition.

For c-store operators, the hemp-derived THC category could offer significant sales and growth opportunities, particularly in states with additional legislation passed to regulate these products. The next year is a critical window for advocacy.

NACS has been at the forefront of pushing for federal recognition and regulation of THC and hemp products for a number of years and has argued for appropriate FDA regulation of hemp-derived CBD products since the 2018 Farm Bill suddenly legalized them.

NACS was also an early member of the Coalition of Cannabinoid Policy, Education & Regulation, which is seeking federal guardrails around THC regulation, including safety regulations and age verification.

"We need regulatory certainty for hemp and CBD products to be sold across the country legally,” said Jon Taets, NACS director of government relations. “The convenience industry is ideally suited to carry hemp and THC products that customers want—the industry's track record for responsible retailing of age-gated products is unmatched. Federal and state regulation should recognize this fact and allow convenience retailers to participate in this market and partner with regulators to ensure a safe, enjoyable experience for customers."

What happens next won’t only be determined by waiting to see what Congress does—it will depend on education, advocacy and fighting for structured regulation instead of prohibition before the clock runs out.

Education Comes First: Understanding the Federal Hemp Ban

In November 2025, the Senate approved a package that included language in the Agriculture Appropriations portion of the bill designed to close the “hemp loophole” created by the 2018 Farm Bill.

The new language changes the definition of hemp from the previous Farm Bill language, which legalized all derivatives of hemp defined as any part of the Cannabis Sativa L plant with lower than 0.3% D9 THC content by dry weight. The new definition essentially bans all intoxicating hemp products, delta-8 products, synthetic products and more.

[Read more in “Inside the Battle to Save Hemp Beverages” from NACS Magazine.]

Additionally, one of the industry’s biggest vulnerabilities, Diana Eberlein, chair of the Coalition of Adult Beverage Alternatives (CABA), told NACS, is that retailers aren’t always sure what they’re selling because they’re being told “it’s hemp” without more detail. “We need to make sure that c-store owners understand what products they’re carrying,” she said.

Under the proposed federal language, products are illegal if they contain more than 0.4 milligrams of THC per package—a threshold so low it wouldn’t just impact intoxicating products. “It’s surprising to a lot of people that many therapeutic, non-intoxicating supplements made from hemp—even CBD topicals—contain trace amounts of THC,” Eberlein said. “While it might not be at an intoxicating level, it could still exceed that 0.4 milligrams per container.”

Low-Dose THC Targets Adult Beverage Consumers

Currently, low-dose intoxicating hemp ingestibles are not in the same Drug Enforcement Administration (DEA) schedule as marijuana, Eberlein explained, making convenience retail an important channel to “normalize cannabis as a whole and change the perception of cannabis as a consumer category.”

Low-dose THC beverages were never intended to replace dispensary products, Eberlein said. “Low-dose THC beverages aren’t necessarily what the traditional cannabis consumer is looking for,” she continued. “They’re really targeting the adult beverage consumer.”

That’s where convenience stores excel as the industry that processes the most age-restricted transactions in the country. “As we know, c-stores dominate that space—particularly ready-to-drink,” she said. “We were seeing tremendous growth as groups like Circle K entered the space,” Eberlein said, especially in states like Georgia, where c-stores have access and liquor stores did not.

But that momentum “could completely cease to exist on November 12, 2026, if this language goes through as written,” she said.

Key Regulatory Priorities for Intoxicating Hemp

At the federal level, concerns about youth access and product safety are driving much of the debate. “First and foremost, intoxicating hemp ingestibles absolutely need to be a 21-plus product,” Eberlein said. “That needs to be made extremely clear—this is an adult product.” Age-gating is a must, she added, and packaging must not appeal to children. “A big concern we hear at the federal level is about synthetic products and copycat products that are marketed to kids,” she said.

She noted that lawmakers often cite so-called “new and novel cannabinoids” as cause for concern. “You’ll hear about cannabinoids like HHC, THCO—things that don’t naturally occur in the cannabis plant,” she said. “They’re often designed to be more potent than traditional D9 THC and are less expensive to manufacture.”

But Eberlein cautioned against painting the entire category with the same broad brush. “The leading products in these spaces are not using synthetic cannabinoids like that,” she said. “They’re using naturally derived D9 THC or converted D9—aka, semi-synthetic—compounds that still originate from the hemp plant.”

And while “synthetic” has become a lightning-rod term, context matters. “Most of the vitamin C adults consume is synthetic vitamin C,” she said. “If done correctly, synthetics are not inherently bad—they just need to be regulated and controlled so we know what the consumer is getting is safe, tested and intended for human consumption.”

Labeling standards and testing from a third-party lab are also critical to ensuring the products sold are safe for consumption, Eberlein said. “If it’s an intoxicating hemp product, it needs to say THC on the front—it can’t say hemp; it needs to say THC. And it needs to clearly list the total milligrams of THC per package on the front,” she explained. “There also needs to be a QR code that takes you to the certificate of analysis. That’s the lab report verifying potency and confirming the product doesn’t contain toxins or ingredients that shouldn’t be there.”

Eberlein: ‘We’re Doing Everything We Can to Self-Regulate’

Testing, Eberlein said, is the line between legitimate retail and illicit risk. Independent testing is already standard practice among legitimate industry players, she said. “There are ways to test whether something is naturally derived D9, semi-synthetic or fully synthetic. The testing measures exist,” she said. “There shouldn’t be any doubt when you’re working with a legitimate group. There should be full transparency; they should be able to answer any questions you have.”

Responsible manufacturers already have ample documentation throughout the supply chain. “There’s almost an overload of documentation compared to traditional marketplaces,” she said. “We’re constantly trying to prove, ‘We’re doing everything we can to self-regulate.’”

There’s been significant discussion about the proposed bill’s lack of enforcement protocol, making regulation a preferred, safer outcome to prohibition. “There is not a single good actor betting on an opportunity to stay open despite the ban just because of a perceived lack of enforcement. No one’s going to risk their licenses,” she said, particularly in beverage, where products are sold through licensed retailers. “That’s how it works with alcohol. They have their federal licenses, and they don’t do anything to jeopardize those because then they can’t operate.”

THC Ban: What C-Stores Can Do Before the 2026 Deadline

The industry is now pushing for a regulatory alternative—or at least more time. From a retail perspective, regulation is a good thing in this case, Eberlein emphasized. Unlike prohibition, she said, regulation helps keep products out of the illicit market and ensures they are sold legally by responsible retailers. Just think about other product bans the convenience industry has seen, such as flavored vape and menthol cigarettes, which have created black markets for the products.

“We have found across many product categories that prohibition doesn’t work. Sound regulation allowing responsible retailers to sell these products is a better approach and we will continue to work with the Congress toward an outcome that works for the industry,” said Taets.

To make that happen, Eberlein said engagement is critical, particularly at the state level. “We strongly recommend that c-stores get involved this year,” she said. “A lot of state legislative sessions open in January.”

States can introduce regulation to influence the outcome at the federal level, she said. Tennessee, for example, has already hired staff to regulate the category. But waiting to be heard is a mistake, she warned. Retailers should make their position clear. “We encourage every group to let their Members of Congress know they prefer regulation over a ban,” Eberlein said. “Dangerous products don’t disappear—they go to the illicit market.”

In the meantime, market behavior is already shifting. “We’re seeing spikes in sales,” she said. “There’s growing awareness that these products could go away.” An outright ban in November “will have ripple effects across industries,” Eberlein added.