Industry Veteran Calls for Unified Cannabis and Hemp Regulations

A cannabis industry entrepreneur is making the case that the current two-tiered regulatory system for marijuana and hemp products creates a dangerous loophole that could undermine the entire sector.

Jason Leisey, founder of Emerald Tea Supply Co. and former institutional finance trader, wrote in an op-ed that applying "rigorous standards to one channel and none to another will eventually produce a failure that damages everyone."

The argument centers on a fundamental disconnect in how cannabis products reach consumers. State-licensed marijuana operations face extensive testing requirements, security protocols, and compliance measures. Hemp-derived products, meanwhile, can often bypass these safeguards entirely thanks to the 2018 Farm Bill's legal framework.

The Trust Problem

Leisey's perspective comes from his background in macro derivatives trading, where he learned how regulatory arbitrage—exploiting differences between similar systems—eventually creates systemic risks. He's now applying that lens to cannabis.

"If the loophole persists, that trust erodes," he wrote. "Not because the hemp farmers are bad people. But because a system that applies rigorous standards to one channel and none to another will eventually produce a failure that damages everyone."

The concern isn't theoretical. Hemp-derived delta-8 THC products have flooded gas stations and convenience stores in recent years, often with minimal oversight. Some states have scrambled to regulate or ban these products after reports of contamination and mislabeling.

One Plant, Two Rulebooks

The current regulatory split treats cannabis as two distinct plants based on THC content. Hemp (under 0.3% THC) falls under agricultural regulations. Marijuana (above 0.3% THC) remains federally illegal but faces strict state oversight where legal.

This creates what Leisey and others see as an untenable situation. Products that deliver similar effects to consumers face wildly different standards depending on their source material and production method.

Licensed dispensaries must test for pesticides, heavy metals, microbials, and potency. They track products from seed to sale. They limit serving sizes and require child-resistant packaging.

Hemp products? Often none of the above.

What's at Stake

The argument for regulatory parity isn't just about fairness to licensed operators, though that's certainly part of it. It's about what happens when something goes wrong.

When contaminated vape cartridges caused lung injuries in 2019, the entire cannabis industry took a reputational hit—even though the problem originated in the illicit market. A similar crisis stemming from unregulated hemp products could do the same damage.

For Leisey and other industry advocates, the solution is straightforward: treat all cannabis products the same, regardless of their THC content or legal classification. Same plant, same rules.

That would mean bringing hemp-derived intoxicating products under the same testing and compliance regimes that govern state-legal marijuana. It would also mean federal action to create a unified framework—something that's proven elusive despite years of reform efforts.

Industry Implications

The debate comes as hemp businesses and marijuana operators increasingly compete for the same customers. Delta-8, delta-10, THC-O, and other hemp-derived cannabinoids have carved out a significant market share, particularly in states without legal marijuana programs.

Some licensed operators view this as unfair competition. Others worry it's a time bomb that will explode and take the whole industry down with it.

Leisey's call for unified standards reflects a growing consensus among industry veterans that the current split can't hold indefinitely. The question is whether regulators will act proactively or wait for a crisis to force their hand.

For now, consumers navigate a confusing landscape where identical-looking products might face completely different safety standards depending on which side of an arbitrary legal line they fall.

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This article is based on original reporting by www.marijuanamoment.net.