Rhode Island Faces Hemp Policy Shift Due to Federal THC Restrictions

Rhode Island's hemp market, which saw $2.85 million in sales in 2025, is facing significant uncertainty as state regulators move to align with new federal THC restrictions. Hemp-infused drinks and seltzers, which accounted for the vast majority of these sales, are now under scrutiny as the state attempts to reconcile local policy with federal mandates.

State officials have indicated that they cannot treat hemp differently than federal law dictates, despite the state's existing legal framework for recreational cannabis. This creates a complex regulatory environment where hemp products previously sold in retail outlets like liquor stores and bars may face new compliance hurdles.

Retailers are expressing concern that these federal-level changes could complicate payment processing. Similar to the challenges faced by the regulated cannabis industry, businesses fear that banks may restrict credit card transactions for hemp products if they are no longer viewed as compliant with federal standards.

While the state has successfully managed its own adult-use cannabis program, officials emphasize that federal law remains the supreme authority. This development highlights the ongoing tension between state-level hemp initiatives and the evolving federal stance on intoxicating hemp-derived cannabinoids.