As the hemp, CBD, and supplement industries continue to grow, business owners find themselves on what U.S. Hemp Roundtable President Jena Murray calls "a roller coaster ride" of regulatory challenges. During a recent Qredible live broadcast, Murray shared valuable insights into the complex CBD regulatory environment facing the industry and offered guidance for operating in this uncertain terrain.

The Federal-State Disconnect

One of the most significant challenges facing CBD businesses today is the disconnect between federal guidelines and state-by-state regulations. While the 2018 Farm Bill legalized hemp at the federal level, the regulatory framework has remained fragmented, creating a patchwork of CBD compliance requirements that vary widely by state.

"It gets complicated because we're kind of having to go multiple channels," Murray explained. "We're working really hard at the federal level and then fighting in the states, trying to get ahead of it at the state level as well."

This multi-front regulatory battle creates significant operational challenges for businesses trying to maintain compliance across different jurisdictions. Some states have created supportive regulatory environments, while others have implemented restrictive measures that threaten industry growth.

Recent examples highlight this inconsistency. California, once considered a progressive state for cannabis, implemented emergency regulations through AB45 that effectively halted most CBD sales in the state. Meanwhile, other states have established clearer frameworks that allow the industry to operate with more certainty, though these too face potential threats from new legislative proposals.

The FDA's Complicated Relationship with CBD

The FDA's approach to the CBD regulatory environment has been inconsistent at best. Murray characterized their involvement as "tangential," noting how the agency will "poke their heads in and send some naughty letters out once in a while and then go away."

A key regulatory hurdle is the FDA's drug preclusion rule, which has created significant complications for CBD regulation. Because the pharmaceutical drug Epidiolex was approved before the 2018 Farm Bill was signed, the FDA has maintained that CBD cannot be marketed as a dietary supplement.

"I think it's overreaching of the FDA, to be very clear," Murray stated. "However, we can't change FDA's mind without going through Congress. FDA has made that very clear."

This CBD regulatory gap has left the industry in limbo, with businesses unsure of how to properly classify and market their products while awaiting clear federal guidance. The FDA has suggested creating an entirely new regulatory center for cannabis products, rather than allowing them to fall under existing dietary supplement frameworks. This approach could further delay much-needed clarity for the industry.

Education as the Key to Better Regulations

Throughout the discussion, Murray repeatedly emphasized education as the critical factor in developing sensible regulations. Many problematic bills and regulations stem from lawmakers' and regulators' lack of understanding about hemp and CBD.

"The people that aren't hitting the mark, I think it's a lack of education," Murray noted. "That ultimately kind of falls on the industry for not properly educating the people involved with drafting these bills and the regulators."

This knowledge gap has led to potentially harmful legislation, including proposals that would severely restrict the hemp industry. For example, language was previously inserted into the farm bill that would have required "non-detectable amounts of THC," which would have significantly hurt even grain and fiber hemp production since all hemp naturally contains some level of THC.

The education challenge extends beyond lawmakers to consumers as well. As CBD becomes more mainstream—even appearing in medical settings, as Murray noted when sharing an anecdote about her mother-in-law being offered CBD in a rehabilitation facility—the need for accurate information becomes even more critical.

The Cannabis Connection: Marijuana and Hemp Relations

The relationship between the traditional marijuana industry and the hemp-derived CBD sector adds another layer of complexity to the regulatory picture. Murray noted that while tensions have existed between these sectors, the situation is improving.

"It's getting better than it was, but there are still some tensions," Murray explained. She described how multi-state operators (MSOs) in the marijuana space sometimes view hemp businesses as having unfair advantages due to fewer regulatory barriers, despite hemp products often being subject to more rigorous testing.

The potential rescheduling of marijuana from Schedule I to a less restrictive classification could help ease some of these tensions. Murray sees rescheduling as "a step in the right direction," particularly for addressing tax issues facing cannabis companies under Section 280E of the tax code.

Finding common ground between these related industries could strengthen advocacy efforts and create a more unified approach to sensible regulation across all cannabis-derived products.

Strategies for Businesses in an Uncertain CBD Environment

For CBD business owners dealing with this complex situation, Murray offered several key recommendations:

1. Stay informed, but don't panic: "Panicking as soon as you see something, I know it's everyone's first reaction, but sometimes you got to take a step back," Murray advised. Many concerning bills fail to become law or are significantly amended before passage.
2. Engage in advocacy: Make contact with members of Congress and state legislators to share your experience and educate them about the industry. Personal stories and data about how businesses operate can provide valuable context for lawmakers.
3. Focus on compliance and transparency: As regulations continue to develop, businesses that prioritize quality, safety, and transparency are better positioned to adapt. This includes proper testing, labeling, and following good manufacturing practices.
4. Join industry organizations: Groups like the U.S. Hemp Roundtable are working to shape regulations and provide members with valuable resources and information. These collective efforts amplify individual voices and create more effective advocacy.
5. Be adaptable: The industry has demonstrated remarkable resilience since 2018, with companies adjusting their approaches as the CBD regulatory environment shifts. This adaptability remains essential for success.

Market Growth Despite Regulatory Challenges in 2025

Despite the regulatory uncertainty, the CBD market continues to expand. Murray cited projections showing the global CBD market reaching $216 billion by 2030, with a compound annual growth rate of 21% from 2025 to 2030.

This growth reflects increasing consumer acceptance of CBD as a wellness product. More people are incorporating CBD into their daily routines, and healthcare professionals are becoming more comfortable recommending these products to patients.

The expansion of the market creates both opportunities and responsibilities for industry participants. As more consumers try CBD products, the importance of quality, safety, and accurate information becomes even more crucial.

Look Ahead to Federal Action

While specific predictions about regulatory changes remain difficult, Murray expressed cautious optimism about progress at the federal level. The industry awaits possible developments with the farm bill and the potential creation of a dedicated cannabis and cannabinoid center at the FDA.

"I don't have a crystal ball," Murray acknowledged, "but we're closer than ever." She noted that the appetite for addressing hemp in the farm bill exists, though it remains uncertain whether a new bill will pass in 2025 or if Congress will extend the current provisions.

Another possibility is the creation of a dedicated FDA center for cannabis products. While Murray prefers seeing hemp products regulated as dietary supplements under existing frameworks, she recognizes that the center approach may provide a path forward given the FDA's current stance.

Collaboration and Persistence in the CBD Environment

The future of CBD regulation will depend largely on continued engagement from industry stakeholders. Murray emphasized that even when facing regulatory setbacks, the response should not be defeat but rather renewed determination.

"It's never a 'oh man, we lost, we're done.' It's a 'oh no, we lost, now we have to hit it even harder to educate and make these connections,'" she explained.

This persistent approach, coupled with a commitment to product quality and consumer safety, offers the best path forward for an industry that continues to show promise despite regulatory hurdles.

As Murray reminded listeners, the CBD industry has shown tremendous resilience since 2018. By staying educated, engaged in advocacy, and committed to quality, businesses can continue to thrive even amid CBD regulatory environment uncertainty.