Texas THC Ban, Tennessee’s ‘Hemp-Killing’ Legislation Top CBT’s Most Popular Stories in May

The cannabis industry in the South saw major shake-ups in May, with new legislation from Texas and Tennessee making waves. Both states have passed sweeping bans on certain hemp products, creating a ripple effect among business owners and cannabis enthusiasts alike.

Tennessee’s Stricter Hemp Laws Take Center Stage

Tennessee has caused quite a stir after Governor Bill Lee signed legislation on May 21 that will ban products containing tetrahydrocannabinolic acid (THCA) and synthetic cannabinoids. The legislation also introduced a ban on online sales for other hemp products starting in 2026, marking the state’s significant step toward regulating hemp-derived goods.

For Tennessee’s hemp business owners, the law’s passage signals a challenging road ahead. By targeting THCA— a precursor compound to THC— lawmakers are cracking down on the sale of many products that have become a fixture in the state’s hemp market. The move has sparked concerns about the future viability of businesses reliant on these products.

Furthermore, the move to prohibit online sales for hemp products introduces another layer of complexity. For companies that have capitalised on e-commerce platforms, the impending ban is nothing short of a “death knell,” according to some industry observers. With January 2026 being the target date for the enforcement of these bans, businesses are scrambling to adjust and prepare for the new regulations.

• Tennessee’s hemp products impacted:

  • THCA-based goods

  • Synthetic cannabinoid products

  • Online sales for other hemp products

Despite backlash from business owners, proponents of the bill argue that it aims to protect consumers from the dangers posed by these substances, which are not fully understood. But will this legislation stand the test of time? The industry remains divided.

Texas Follows Tennessee with More Hemp Restrictions

Just days after Tennessee made headlines, Texas joined the conversation, sending Senate Bill 3 to Governor Greg Abbott’s desk. This legislation will similarly ban the manufacturing and sale of hemp products containing any THC or derivatives, with exceptions only for nonintoxicating compounds like CBD or CBG.

Texas Rep. Tom Oliverson, who championed the bill, made it clear that the goal was to restrict products that can cause a “high.” “If it gets you high, it is not legal anymore,” he said during a statement on the House floor on May 21.

While Oliverson’s words resonate with those advocating for tighter restrictions, the move to restrict THC products has raised concerns among hemp growers and retailers. Many believe the bill will hit businesses that have come to rely on the growing popularity of products like delta-8 THC, which has become a major player in the hemp market in recent years.

In a state that was once considered a haven for hemp businesses, these new laws might feel like a step backward. For some, it’s a severe blow to the industry’s momentum, especially since Texas has become a top producer of hemp in recent years. With Senate Bill 3 poised to impact not only product availability but also the livelihoods of many in the sector, the move has sparked heated debates.

Impact on Southern Hemp Businesses

The new laws in both Texas and Tennessee highlight the challenges facing Southern hemp entrepreneurs. As state regulations tighten, many business owners are looking for ways to adjust their operations and stay compliant. These changes raise questions about the future of the hemp market in the South, especially with major players like Texas and Tennessee leading the charge on the regulatory front.

• • Restrictions on THCA and synthetic cannabinoids

  • Loss of online sales opportunities

  • Potential closure of businesses reliant on THC-based products

  • Increased scrutiny and regulatory hurdles

For now, the future of Southern hemp businesses remains uncertain. Some are optimistic that the market will rebound, while others worry that these regulatory shifts might stifle growth and push hemp entrepreneurs out of business. Whatever the outcome, May 2025 will go down in history as a pivotal moment in the ongoing saga of hemp legislation.

What’s Next for the Cannabis Industry in the South?

As the summer months approach, many wonder if other Southern states will follow Texas and Tennessee’s lead in tightening regulations. The domino effect of these legislative moves could be substantial, potentially leading to even stricter laws across the region.

While the hemp industry continues to push for changes that would allow for more freedom in the marketplace, lawmakers seem determined to reign in what they see as a “wild west” approach to cannabis-based products.