Hemp industry loses case against DEA, as federal appeals court says CBD a controlled substance

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A federal appeals court sided with the Drug Enforcement Administration and upheld its decision that CBD is a Schedule 1 controlled substance – a major setback for the American hemp industry.

The decision, issued Monday by a three-judge panel of the 9th Circuit in San Francisco, means that hemp producers can only sell cannabidiol where it is allowed under state law.

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“We’re encouraged that the court found that the Farm Bill is in fact valid,” Hoban Law Group attorney Garrett Graff said.

CBD production and the DEA rule “can coexist for those growing and processing industrial hemp pursuant to the Farm Bill,” he said.