State Pushback on Federal Hemp Rules — What Wholesalers Need to Know in 2026

Recent changes to federal hemp policy have raised new questions for producers, retailers, and wholesalers across the country. While the government’s updated spending bill includes language aimed at restricting hemp-derived cannabinoids, several states have already signaled that they do not intend to enforce those provisions. For wholesalers planning inventory and evaluating 2026 distribution opportunities, this emerging pattern of state-level autonomy is an encouraging sign that stability remains in place across several key markets.

Pure Shenandoah has followed every development closely, and early indicators show that hemp-derived beverages—especially low-dose THC drinks—will continue to have room to grow in regions openly defending their hemp industries. Understanding how these states are responding helps wholesalers make informed decisions as the market adjusts.

How States Are Responding — And What It Means for Distribution

Kentucky was among the first states to publicly push back. In coverage from Marijuana Moment, Governor Andy Beshear emphasized that hemp is “an important industry” that should remain under state control rather than subject to federal restriction. For wholesalers, that clarity suggests Kentucky’s regulatory environment will continue supporting hemp-derived beverages throughout 2025 and into 2026.

Colorado has taken a similar stance. Reporting from Axios Denver indicates that state officials do not plan to enforce the new federal limitations, instead continuing to regulate hemp-derived beverages under Colorado’s existing, well-established framework. This is meaningful for wholesalers operating regionally, as Colorado remains one of the strongest markets for infused drinks.

South Carolina’s position is being reinforced at the federal level. Marijuana Moment recently reported that Representative Nancy Mace is circulating legislation aimed at blocking the federal hemp THC ban entirely. This signals ongoing support for hemp products within the state and suggests that South Carolina’s retail environment will remain open to compliant hemp-derived beverages.

Tennessee has been equally direct. According to reporting from WBIR News, state regulators announced that Tennessee’s hemp program “will remain unchanged,” confirming that federal language will not alter how Tennessee oversees hemp-derived cannabinoids. This creates a stable environment for wholesalers working within state boundaries.

Most recently, Texas joined the list of states declining enforcement. In a report from The Texas Tribune, state officials clarified that Texas will not enforce the federal restrictions targeting hemp-derived THC, maintaining continuity for one of the largest beverage markets in the country.

Together, these statements paint a clear picture: several states are choosing to protect their hemp industries rather than adopt the federal language. For wholesalers, this means distribution opportunities remain strong across multiple regions where consumer demand for THC beverages continues to grow.

What This Means for Wholesalers in 2026

The early pushback from these states not only benefits local retailers—it offers wholesalers a degree of predictability during a period of national policy change. Low-dose THC beverages, water-dispersible cannabinoid inputs, and functional hemp drinks remain in demand, especially in areas where state regulators have made their stance clear.

At the same time, retailers are becoming more selective about their supply partners. As regulations evolve, businesses increasingly look for producers who offer transparent documentation, accessible COAs, consistent formulations, and clear sourcing information. For wholesalers, ensuring that every product in their catalog is backed by reliable testing and compliant production has become essential.

Pure Shenandoah’s Commitment to Stability and Transparency

Pure Shenandoah continues to monitor all federal and state-level hemp updates, evaluating every regulatory change as soon as information becomes available. Our priority is ensuring that distributors and retailers have the clarity they need to plan confidently, regardless of shifting federal language. When changes occur, our wholesale partners are notified immediately with clear, concise guidance.

Our cannabinoid formulations—including the water-dispersible inputs used in Buzzin’ THC Seltzer—are created through a vertically integrated, seed-to-sale model built on transparency and consistency. All testing is conducted through accredited third-party labs, and every batch is published publicly on our Lab Results page. This ensures wholesalers can provide retailers with the documentation needed for compliance and consumer confidence.

Pure Shenandoah’s approach has always centered on state-aligned production, responsible formulation, and clear communication. As the hemp beverage landscape evolves, our commitment remains the same: provide wholesalers with compliant, high-quality cannabinoid products backed by reliable testing and fully traceable sourcing.

Explore Wholesale Opportunities With Pure Shenandoah

As wholesalers prepare for 2026, working with stable, transparent supply partners is more important than ever. Pure Shenandoah offers a growing catalog of infused beverages and cannabinoid formulations—including Buzzin’ Berry THC Seltzer, Hydrate CBD Sparkling Water, and additional state-aligned cannabinoid inputs—supported by clear documentation and a fully verified supply chain.

Learn more about partnering with us through our Wholesale Landing Page, or begin the process by submitting a Wholesale Application. Our team is here to support your business with consistent supply, compliant formulation, and ongoing clarity as the hemp market continues to evolve.

Written by:
Thomas Malone
General Counsel
;