Rhode Island Eyes Regulatory Clampdown on THC-Infused Beverages

In a move that could ripple through the national CBD market, Rhode Island lawmakers are weighing a pivotal ban on hemp-derived THC beverages, raising red flags for industry stakeholders and retailers alike.

Rhode Island is on the verge of redefining how the CBD industry operates within its borders, as state legislators propose a ban on intoxicating beverages made with hemp-derived THC. The legislation—currently under review in committee—seeks to prohibit the sale of consumables containing Delta-8, Delta-10, and other synthetic cannabinoids derived from federally legal hemp. This development marks a significant inflection point, not only for local retailers and manufacturers, but also for national brands eyeing New England as a strategic expansion territory.

At the heart of the debate is a regulatory grey area created by the 2018 Farm Bill, which legalized hemp containing less than 0.3% Delta-9 THC but failed to account for psychoactive analogs manufactured through chemical processes. The resulting market has seen a boom in hemp-derived THC beverages marketed as “legal highs”—a loophole that Rhode Island officials are now aggressively seeking to close. Public health advocates argue these products pose unknown risks, particularly to minors, due to inconsistent labeling and unregulated distribution channels.

If passed, the legislation could create a domino effect across similarly positioned states, where lawmakers are under increasing pressure to reconcile federal cannabis loopholes with local public safety mandates. For CBD businesses, this signals a shift toward tighter compliance requirements and more scrutiny around product sourcing and formulation. Beverage makers leveraging hemp-derived THC as a growth vehicle may need to reconfigure SKUs update labeling protocols, or exit specific markets altogether. Meanwhile, the move may accelerate innovation in non-psychoactive cannabinoids like CBG and CBC, offering new pathways for product differentiation in a tightening regulatory climate. Industry insiders are advised to monitor Rhode Island’s legislative proceedings closely, as the outcome may set precedent for state-level enforcement models that prioritize consumer protection while redefining market access in the evolving CBD landscape.