A federal crackdown on hemp-derived cannabinoids advanced in Congress this week, triggering alarm across the $28 billion U.S. hemp industry. A House subcommittee approved a spending bill that would redefine hemp in a way that bans most intoxicating cannabinoid products, including THCA flower, delta-8 and even some full-spectrum CBD.
The proposed legislation, backed by Rep. Andy Harris, now moves to the full House Appropriations Committee for markup on June 11. If enacted, it could reshape the cannabis landscape far beyond hemp, affecting retailers, manufacturers and state regulators across the country.
All this sets the stage for next week’s Benzinga Cannabis Capital Conference, taking place June 8–10 at the Marriott Magnificent Mile in Chicago. With more than 120 speaker, the event will focus on capital raising, M&A, state-level policy and how operators are adapting in the face of intensifying federal scrutiny.
From California’s record-breaking sales decline to regulatory confusion in Argentina and legalization momentum in Chile and Ukraine, here’s everything that moved the global cannabis conversation this week.
Congress Advances Hemp THC Ban, Industry Warns Of Collapse
A GOP-led House subcommittee has advanced a bill that would redefine hemp and effectively ban most intoxicating cannabinoid products, including THCA, delta-8, delta-10 and full-spectrum CBD. The measure, included in the FY2026 Agriculture-FDA appropriations bill, passed in a 9–7 vote and now heads to the full House Appropriations Committee for markup on June 11.
Backed by Rep. Andy Harris (R-MD), the bill proposes narrowing hemp’s legal uses to fiber, grain, and industrial applications, with an exemption for FDA-approved drugs like Epidiolex. The U.S. Hemp Roundtable warned that the language could destroy a $28.4 billion market and cost more than 300,000 jobs.
Marijuana Moment first reported the bill’s advancement and its potential to shut down the market for unregulated cannabinoids, many of which emerged under the 2018 Farm Bill.
“This would eliminate the vast majority of hemp-derived products sold nationwide,” said Jonathan Miller, general counsel for the Roundtable. “It’s a farmer-crushing, job-killing ban.”
Critics, including the Wine & Spirits Wholesalers of America and the National Cannabis Industry Association, say the language is overly broad and risks fueling the illicit market. Analysts like Todd Harrison noted that banning intoxicating hemp would not kill the crop itself but would benefit state-licensed cannabis programs by curbing unregulated competitors.
MediPharm Labs Sells BC Facility, Expands EU Production
MediPharm Labs Corp. LABS MEDIF sold its Hope, British Columbia facility to Rubicon Organics ROMJ ROMJF for $4.5 million in cash. CEO David Pidduck said the deal will improve MediPharm’s cash position and sharpen its focus on pharmaceutical-grade cannabis, particularly through expanded cultivation at its EU GMP-certified Ontario site.
Budr Acquires Three Botanist Dispensaries In Connecticut
Budr Cannabis, which already operates four locations in Connecticut and one in New York, acquired three Botanist dispensaries from Canopy Growth’s U.S. subsidiary. The Botanist will remain active in other states including Massachusetts, New York and New Jersey.
Village Farms Completes Fresh Produce Divestiture
Village Farms International VFF finalized its exit from the produce business, closing the privatization of its greenhouse-grown fruits and vegetables division. CEO Michael DeGiglio says the move strengthens Village Farms’ focus on international cannabis growth, with 160 acres of greenhouse facilities now allocated primarily to cannabis production.
Vangst Acquires Se7en Staffing
Cannabis hiring platform Vangst announced its third acquisition in a year: Se7en Staffing & Employment Solutions, a Missouri-based firm. No financial terms were disclosed. The move reinforces Vangst’s position as a leading cannabis workforce provider.
Ohio Doubles Daily Flower Purchase Limit
Ohio cannabis consumers can now purchase up to 2.5 ounces of flower per day, more than doubling the previous 1-ounce limit. The Ohio Division of Cannabis Control issued updated guidance following strong sales since adult-use launched in August 2024. As of late May, recreational purchases had surpassed $539 million.
California’s Cannabis Sales Hit Five-Year Low
California’s legal cannabis market posted its biggest quarterly drop in history, with Q1 2025 taxable sales falling 11% year-over-year to $1.088 billion. Experts blame a combination of overregulation, rising taxes, and competition from the illicit market. A scheduled excise tax hike from 15% to 19% on July 1 threatens to worsen the trend—though a new bill to delay the increase passed the Assembly unanimously.
California Assembly Votes to Delay Tax Hike
The California Assembly voted 74–0 in favor of delaying the cannabis excise tax increase until 2030–31. Sponsored by Assemblymember Matt Haney, the bill now moves to the Senate. UFCW Local 1167 and other labor groups applauded the vote as a win for licensed operators.
Ukraine Approves First Medical Cannabis Import
Ukraine’s State Medical Service issued its first permit to import cannabis-based medicines, expanding a program legalized in 2023 after years of war-related trauma. The approved product is registered in the country and marks a key step in opening Ukraine’s market to international supply chains. President Volodymyr Zelensky has consistently backed medical cannabis as a tool for public health and recovery.
Chile Reopens Debate on Cannabis Legalization
Chile’s Congress reintroduced a long-stalled bill to legalize adult-use cannabis, including home grow and nonprofit collectives. The proposal, backed by the “Regulación por la Paz” coalition and newly supported by President Gabriel Boric, would authorize up to six plants per person and regulated dispensaries. The government’s proposed roadmap mirrors Uruguay’s public-health-driven model, with four rollout phases planned through 2027.
Read more on El Planteo
Argentina’s Cannabis Regulation Enters Legal Limbo
In Argentina, government agencies INASE and ARICCAME are locked in a bureaucratic standoff that’s jeopardizing the legal cannabis industry. Operators have been blocked from renewing licenses, registering genetics, or accessing critical systems, effectively pushing them into regulatory gray zones. Meanwhile, the Health Ministry is demanding compliance with requirements that can’t be met, due to the same administrative freeze.
Continue reading on El Planteo
Weedmaps Launches Apparel Collab with Robin Eisenberg
Weedmaps teamed up with LA-based artist Robin Eisenberg for a limited-edition apparel and accessories collection. Known for her cosmic, body-positive illustrations, Eisenberg brings a vibrant twist to cannabis lifestyle fashion. The line includes denim jackets, cowgirl-themed tees, glow-in-the-dark socks, and home accessories—all centered around empowerment and creativity.
Weedmaps says the capsule reflects the inclusive spirit of cannabis culture and marks its first explicitly female-forward drop.
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Congress advances hemp THC ban as cannabis leaders prep for Benzinga’s Chicago conference. Global markets shift. Here’s the full recap. Read More
