Tennessee Hemp Retailers Reach Deal With State to Continue Selling Hemp THC

A Tennessee hemp industry trade group announced a deal with the state Agriculture and Revenue Departments to let licensed hemp product retailers continue selling certain THC products for about half of next year, despite the products being banned under a new law set to take effect on January 1, Tennessee Lookout reports.

State lawmakers passed legislation earlier this year banning most hemp-derived THC products. The proposal, which takes effect on January 1, aims to carve out a market for THC-infused edibles and beverages under a system similar to the state’s alcohol regulations, but bans all smokable or vaporizable hemp THC products.

Tennessee Healthy Alternatives Association said that the agreement, however, will allow hemp businesses with licenses issued before December 31, 2025, to continue selling the banned products under the state’s previous regulatory framework until their licenses expire on June 30, 2026. The organization also indicated it was dropping plans for a legal challenge to the ban.

Meanwhile, the hemp THC space faces the existential threat of a looming national crackdown after President Donald Trump (R) signed a spending bill that contains provisions declaring hemp-derived THC products illegal under federal law. That provision is set to take effect on November 12, 2026, exactly one year after Trump signed the bill.