Restrictions of cannabidiol (CBD), a substance found in the cannabis plant, in the United States are projected to loosen up through the next few months, and this development may very well be the boost that the industry needs in establishing a strong footing.
CBD is an active ingredient in cannabis that produces no psychoactive effects, per The Guardian, and it has gained prominence over the recent years due to its many therapeutic properties. Cannabis advocates have hailed it for its ability to combat a myriad of ailments, while others praise it for being a soothing remedy for anxiety and pain.
Described by The Washington Post as the “new ‘it’ drug,” the cannabinoid is now present in many products, including gummy bears, water and coffee shops lined up in major cities like Colorado Springs. There are even CBD gummies your dog can chew on, what with Diamond CBD releasing a CBD-for-pets product line under the name MediPets.
So the question begs, is it legal in all 50 states? It depends on who you ask. For one, people in the cannabis industry claim that as long as a CBD product contains less than 0.3 percent tetrahydrocannabinol, then it is legal to be widely distributed.
Then there’s the 2014 farm bill, which establishes guidelines for growing industrial hemp in the U.S. There’s also Republican Senator Mitch McConnell, who announced back in March that he will be introducing a bill that will legalize hemp on a federal level.
Yet despite all this, CBD is still not entirely legal in all 50 states, although it’s widely available. Still, that doesn’t mean any bad news, as a large-scale company called PotNetwork Holdings, Inc. (OTCMKTS:POTN) has already made a strong foundation with its consumers through its subsidiaries, indicating that there is no way to go but up once the cannabinoid gets full legality. And looking at recent developments, that doesn’t seem too far off.
Recently, the U.S. Food and Drug Administration approved of the Epidiolex oral solution. Developed as a treatment for two types of epilepsy, the medicine uses CBD as its active ingredient. This marks a significant step in the industry, as while many products have been approved for medical use in numerous states, this is the first one that was granted legality on a federal level. What’s more, the Drug Enforcement Administration (DEA) is also expected to change its stance against the cannabinoid within 90 days, effectively declassifying it as a Schedule I drug.
For POTN, this marks a significant improvement of the government’s attitude towards the cannabis industry in general. A leading publicly traded company that largely focuses on the research and development of CBD products, POTN acts as a holding company for its subsidiaries, which includes Diamond CBD, one of America’s leading manufacturers of premium and world-class CBD products.
POTN recently underwent the process of changing its name to Biotech Hemp, Inc., indicating the company’s goal to largely focus on strengthening its identity as a major player in the field, what with Diamond CBD surpassing $2 million in sales per month. Its revenue also skyrocketed, with the subsidiary’s online sales reaching $699,000 back in May, surpassing the sales of the same month last year. A clear indicator of continuous market growth, POTN’s trend of breaking sales record after sales record is evidence of a company advancing on multiple levels in an industry that is perfectly ripe for picking.
In reality, the DEA can still withdraw its stand regarding the legality of CBD. The department still has three months left, and anything can ultimately happen. Still, with the win-win situation of CBD’s medical benefits and the potential of a booming industry, the department will definitely consider green-lighting it for legalization.