Which industry group most directly benefits economically from the federal THC cap that eliminates unregulated hemp-derived THC products?

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Large licensed marijuana companies—operating state-regulated dispensaries under strict licensing, testing, and taxation regimes—were among the loudest advocates for banning unregulated hemp-derived THC products. These companies hold expensive state licenses (often costing millions), pay excise taxes (sometimes 25-40% on retail sales), and comply with seed-to-sale tracking, lab testing, and age-verification requirements. Hemp manufacturers, by contrast, operated outside these rules by exploiting the 2018 Farm Bill loophole, selling intoxicating delta-8 and delta-10 products in gas stations and online with minimal oversight and no excise taxes. This created a competitive disadvantage: licensed cannabis operators could not match hemp manufacturers' low prices or distribution reach. By lobbying for the federal THC cap, marijuana industry groups (like the National Cannabis Roundtable) eliminated their unregulated competition and forced consumers back into licensed dispensaries—expanding their market share and raising prices. State attorneys general joined this push, citing public safety concerns about untested hemp products sold to minors, but the economic beneficiaries are clear: licensed marijuana companies that can now charge higher prices without hemp competition. This case teaches the concept of regulatory capture—when established industries use government rules to restrict new competitors, protecting incumbent profits under the guise of consumer protection. It also shows how lobbying coalitions form: marijuana companies, state AGs, and some public health advocates aligned to ban hemp, while hemp farmers, small manufacturers, and libertarian lawmakers (like Rand Paul and Thomas Massie) opposed the ban as government overreach. The outcome reveals which coalition had more political power in Congress: established cannabis interests and state enforcement officials prevailed over hemp entrepreneurs and free-market advocates.

Which industry group most directly benefits economically from the federal THC cap that eliminates unregulated hemp-derived THC products?

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