Newsom Says No More: California to Regulate Hemp?
What happens when the world’s biggest cannabis market draws a line in the sand—saying no more to unregulated intoxicating hemp products? In this episode of TDR Trade To Black Podcast presented by Dutchie, host Shadd Dales and co-host Anthony Varrell bring back Michael Bronstein, President of the American Trade Association for Cannabis and Hemp (ATACH), for our Insiders Edge segment—breaking down Newsom’s new hemp integration law in California, what enforcement could look like, and how it sets the tone for national reform. We’ll also cover the latest rumors on cannabis rescheduling, and what Bronstein is hearing about a potential Trump administration announcement in the near term.
The markets have shown positive effects from recent Trump-aligned video praising cannabinoids, fueling expectations that the administration hasn’t tamped speculation down. Bronstein argues the political effect of rescheduling could be as significant as the policy, with rank-and-file Republicans in swing states like Virginia and Pennsylvania increasingly discussing legalization.
In the news, Governor Gavin Newsom just signed California’s Assembly Bill 8, merging hemp and cannabis under one regulated system. This might sound like a small legal fix, but it could transform how THC, hemp, and marijuana are defined nationwide. So what does this mean for consumers, hemp operators, and licensed cannabis businesses trying to stay alive in a tough market?
Bronstein believes Governor Newsom’s decision seeks parity and closes loopholes that let unregulated products compete with regulated ones, even though implementation isn’t slated until 2028. He adds that beverage makers and sellers of synthetic THC products are lobbying in opposite directions, complicating national coherence.
The conversation dives into state tax and revenue fights. Michigan’s proposed tax changes raise sustainability concerns, with Bronstein warning that taxation functions as regulation; overly high rates threaten the legal market, especially with 280E still biting. In Pennsylvania, he says resistance persists among some lawmakers despite the state’s comfort with other “sin” revenues.
On Oklahoma, Bronstein acknowledges the program’s “wild west” start, citing early illicit activity and a subsequent clampdown that squeezed many operators. More broadly, he notes growing federal attention to porous supply chains and imports feeding synthetic markets.
Hear the debate when you tune in to this episode.
