Why US DEA decision does not mean the end for cannabinoids

FOR IMMEDIATE RELEASE

Why US DEA decision does not mean the end for cannabinoids

The US intoxicating hemp-derived cannabinoid (IHDC) market will not be ended by clarification from authorities saying delta-8 THC-O and delta-9 THC-O are illegal.

Multiple reports have incorrectly suggested that the clarification from the US Drug Enforcement Administration (DEA), which was specifically on two THC acetate ester variants that cannot be found in nature, applies more broadly to cannabinoids such as delta-8 THC itself.

But as CannIntelligence correctly predicted more than a year ago, THC-O is a separate entity.
“THC-O acetate does not fit into the hemp definition…because it is neither a hemp cannabinoid nor a hemp isomer,” CannIntelligence said at the time. “We believe that THC-O acetate is a Schedule I controlled substance as a tetrahydrocannabinol that is not exempted under the hemp definition.”

The legality of this specific variant has no impact on the legality of delta-8 THC or other IHDCs. In fact, CannIntelligence and other commentators believe the clarification strengthens arguments around the legality of other IHDCs that can be found occurring naturally in the plant.

CannIntelligence research indicates that the US IHDC market was worth around $400m in 2022, which could be reasonably expected to increase to over $1bn by 2025. THC-O formulations are the fourth most commonly sold (out of a list of 50) by retailers marketing IHDCs in the country, following delta-8 THC, CBD and hexahydrocannabinol (HHC).

CannIntelligence senior legal analyst Anthony Traurig said: “While we’ve become a bit accustomed to general media missing the point on stories about the cannabis industry, what strikes me differently about this case is the number of people who hold themselves as experts on the industry who have completely whiffed on this issue. Yet we published a report in 2021 that accurately predicted that THC-O should be considered a controlled substance, and distinguished it from other IHDCs.

“With the cannabis industry facing tough times, I believe more than ever that accurate info is vital to those in the space. There are plenty of people and companies out there that will hold themselves out as experts and give ‘free’ advice, but this is just another example of why getting the right information is worth the investment.”

ENDS

About us: CannIntelligence provides independent, in-depth regulatory and market data and intelligence for the global cannabis and cannabinoid sector. We provide our clients with the tools to navigate this fast-moving sector, tailor their business strategy, optimise resources, and make informed decisions. Our global perspective on the international cannabis and cannabinoid sector offers valuable data such as market trends, key players, regulatory obligations and industry dynamics.

 It is published by Tamarind Intelligence, which also produces ECigIntelligence and TobaccoIntelligence.

Photo: Erin Hinterland

Barnaby Page

Editorial director

Before joining ECigIntelligence in early 2014 as one of its first employees, Barnaby had a 30-year career as a reporter and editor for newspapers, magazines and online services, working in Canada, the US and the Middle East as well as his current British location. He has edited publications covering fields including technology and the advertising industry, and was launch editor of the first large daily online news service in the British regional media. Barnaby also writes on classical music and film for a number of publications. Barnaby manages the editorial and reporting teams and works closely with the analyst teams, to ensure that all content meets high standards of quality and relevance. He also writes for the site occasionally, mostly on science-related issues, and is a member of the Association of British Science Writers.