Summary:
Chicago businesses selling cannabis-derived products face a critical threat after a federal bill effectively bans their products by closing a loophole that allowed trace amounts of THC in hemp products. Business owners have one year to remove these items before they become illegal.
Many local entrepreneurs argue that the state’s limited cannabis licenses favor larger corporations, leaving small and minority-owned businesses struggling. Jason Knight, who started a $500,000 online business selling THC-infused ice cream, is reconsidering his plans due to the new regulations and may have to liquidate his business.
City Council members have expressed concerns over hemp products, especially those marketed to children, while social equity dispensary licensees see the ban as a victory against unregulated competition. Owners complain that the ban could push sales underground and impact jobs in the industry.
Mayor Brandon Johnson’s proposal to tax hemp products to address budget gaps has been scrapped in light of the new federal restrictions. Critics worry this will create an unsafe underground market, further jeopardizing the livelihoods of those invested in the cannabis sector.
