‘No Companies Will Invest’: How California’s Hemp Rules Could Hurt Cannabis Businesses

California’s hemp industry is facing a potential shakeup as Governor Gavin Newsom moves forward with emergency rules that would impose strict limits on hemp products.

The proposed regulations, driven by concerns over public safety and pressure from the regulated cannabis market, have sparked debate across the state. These restrictions could reshape not only the cannabis market in California but also have ripple effects nationwide.

Impact On The California Market

Bryna Dahlin, partner at Benesch Law, chair of the firm’s cannabis industry group, and upcoming speaker at the Benzinga Cannabis Capital Conference weighed in on how these proposed restrictions could affect California’s cannabis market. According to Dahlin, the financial struggles of many regulated cannabis companies have contributed to the pressure for more stringent rules on hemp.

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“Newsom’s emergency rules are the result of pressure from regulated cannabis companies in CA that have been in a financial vortex for years for a variety of reasons,” Dahlin said. The introduction …

Full story available on Benzinga.com