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CBD's popularity grows while it remains a grey legal area.
February 26, 2019

What’s Going On With CBD?

It’s been three weeks since NYC officials put the kibosh on CBD in food and beverages from restaurants. As we stated at the time, the action by NYC and similar moves by officials in Ohio, Maine, and California was far more of a correction than a punitive strike against businesses selling CBD products. Since then? Not much has changed, but we’re still seeing a lot of confusion swirling around CBD and what is and is not legal. Let’s discuss.

Legality Of CBD Is Very Murky At This Point

We discussed this pretty extensively at our New York City roundtable last month, but it bears repeating. The legality of CBD on a federal and state level is still very much up in the air. While the FDA has approved one CBD-derived treatment for seizures, CBD itself is still a drug in the FDA’s eyes. That means it cannot be approved for handling or inclusion into a muffin, latte, or cocktail.

Why Is Everyone So Excited About CBD? It’s Simple: Wellness

The wellness industry is one of the most rapidly growing and high-profile industries in the past 10 years. When Goop got in bed with MedMen last summer, everyone in the plant-touching biz saw the writing on the wall. Toss in the Farm Bill passage and the fact that traditionally agriculturally strong states such as Tennessee, Wisconsin, and Missouri are considering legalization of medical or already have, and you’ve got a perfect storm of speculative investment and excitement around CBD.

Compliance and Testing Around CBD Remains An Unresolved and Big Topic

CBD is an isolated chemical compound that is derived from hemp. Unlike a whole flower, this means that you’ve gotta render CBD in some fashion (typically with chemical compounds to separate it from THC and other stuff on a molecular level). In any case, these isolating compounds are not always tested or used in a way with the consumers health in mind.

While the irony of a wellness product being untested or unsafe for a consumer is juicy, it’s also a big alarm. MMLG’s Juli Crockett explains: “Especially in the unregulated CBD-only markets, where there is not the same rigorous testing requirements as CBD-rich oil/products derived from cannabis in the licensed markets, there is a real lack of knowledge and information as to what the consumer is taking in along with the purported CBD.”

As always, because we’re “Yours In Compliance,” it comes back to compliance and testing, but seriously: make sure your CBD is purchased from a reputable company with strong testing protocol.