The government funding bill signed on Nov. 12, following the 43-day federal government shutdown, contained a provision targeting over 95% of hemp-derived consumer products planned to take effect in November 2026.
South Carolina state law, under proposed Bill H. 3924, is attempting to regulate the “consumable hemp product” by restricting retailers from selling to underage individuals, mandating signs stating that buying the product underage is a crime, and restricting marketing. The bill passed in the State House in April and is now facing Senate subcommittee approval.
Despite bans not yet being in effect, South Carolina law enforcement is moving forward with raids in several Clemson-area stores that sell hemp-based products.
Surrounding cities have enlisted the assistance of the South Carolina Law Enforcement Division, Pickens County Sheriff’s Office, Pickens Police Department, Clemson Police Department, Seneca Police Department, the Greenville County Drug Enforcement Unit and the U.S. Drug Enforcement Administration in executing search warrants involving several locations across local counties, according to FOX Carolina.
In these searches, evidence related to suspected illegal narcotics activity was seized; however, the nature of the substances and potential charges have yet to be released, according to FOX Carolina.
Sales in several Clemson-area stores, including Zen Den of Clemson, rely heavily on hemp-based products. This ban raises concerns about the future of inventory and appeals to local consumers.
Charlie Lathan, owner of Zen Den, plans to close his business by January 2026, marking the end of 14 years of operation.
Hemp and THC products were about “85 to 90% of our sales,” and without them, he “can’t survive out here,” Lathan told The Tiger in an interview.
Lathan also discussed the increased regulations on retailers across the state.
“SLED and the local police have executed 13 raids; they have essentially shut me down,” he said.
Lathan noted that after law enforcement searched the store, officers had wiped all of his hemp products off the shelves.
“South Carolina is getting a head start” on taking THC products, Lathan continued.
Outside of downtown Clemson, business owners are expressing similar concerns.
Meagan Moore, manager of Purley CBD in Greer, South Carolina, told FOX Carolina in an interview that “it’s scary because I don’t know where we’ll be in a year.”
“I definitely don’t think we’ll go down without a fight, but it’s definitely scary,” she added.
Moore also expressed her concerns for farmers, small businesses and customers.
“It is concerning especially for our elderly community and our veterans,” Moore added. “It’s definitely concerning to not give them the relief they’ve felt for years.”
CNBC reports that over 300,000 jobs tied to the hemp industry will be impacted, and that industry experts expect these economic impacts to affect states with large hemp sectors, including Kentucky, Texas and Utah.
The bill would outlaw products that contain more than 0.4 milligrams of THC per container, counting delta-9, delta-8, delta-10 and other THC-class cannabinoids. THC is “a psychoactive cannabinoid, or compound found in the cannabis plant,” according to The Hill.
Infused products — such as cannabinoid-infused gummies that have seen an increase in use for leisure and health purposes — may be banned by Congress. Some people consume these gummies to improve sleep, The Hill reports.
Additionally, items such as THC-infused drinks, vapes with cannabinoids and THC-infused oils would likely be banned under the provision.
The extent of products impacted by the bill will not be clear until the Food and Drug Administration publishes its list of cannabinoid products in 90 days and provides a definition for a container.
According to an official statement from the U.S. Hemp Roundtable released on Nov. 13, a “large majority of non-intoxicating CBD products on the marketplace feature more than 0.4 mg of THC per container.” Thus, they would be effectively banned.
Industry executives told CNBC that the new regulations could “wipe out 95% of the $28 billion hemp retail market when it takes effect in a year.” Companies will have to reevaluate their inventory, as a single hemp gummy is 2.5 to 10 milligrams of THC, according to the Journal of Cannabis Research.
The new legislation would eliminate the THC loophole from the Agriculture Improvement Act passed in 2018, also known as the Farm Bill. This bill legalized a significant amount of hemp-derived products, including industrial-use products, rope, textiles and seeds.
The bill is set to be implemented on Nov. 13, 2026, according to Clark Hill.
