CBD stands for cannabidiol, a non-intoxicating substance found in cannabis. CBD is the second-most prominent cannabinoid in cannabis after THC, which has an intoxicating or psychoactive effect. CBD can be sourced from marijuana or hemp plants and has a wide range of purported therapeutic benefits, such as reducing pain, inflammation, and anxiety, and suppressing seizures. Since the cannabinoid has gained considerable attention for its therapeutic properties, more high CBD strains have recently been cultivated.
CBD derived from marijuana is only available from a licensed dispensary.
Although cannabis was decriminalized to an extent in New York in August 2019, those who are found in possession of cannabis-derived CBD products may be subject to penalties.
The new law will help provide much needed clarity to the regulation of products containing CBD, but there are important gaps the statute has yet to fill.
The New Statute
Given the lack of a clear regulatory framework nationwide, industry should mind the federal regulatory gap and stay attuned to local developments affecting CBD businesses.
The Road Ahead
Looking ahead to 2020, the CBD industry appears poised for growth, but this growth is likely to come with increased scrutiny by federal and state regulators. Many producers would welcome national standards on CBD products, especially those related to food and beverage products.