Charlotte's Web stock is soaring on Wednesday after a bipartisan coalition of lawmakers introduced a new bill that would allow for CBD to be legally marketed as a dietary supplement—big news indeed for Charlotte's Web Holdings (TSX:CWEB) (OTCQX:CWBHF).
Another Step for Hemp
While hemp and hemp-derived substances were federally legalized with the passage of the Farm Bill 2018, the Food and Drug Administration (FDA) is still working through the lengthy process of developing regulations that would allow businesses to sell hemp products as dietary or nutritional supplements, a process which could take years without congressional action.
However, a bill filed on Monday by Rep. Collin Peterson (D-MN), chairman of the House Agriculture Committee, has sent Charlotte's Web stock soaring in that it amends the Federal Food, Drug and Cosmetic Act to include CBD in the definition of dietary supplements. The deal is cosponsored on both sides of the political divide by Reps. Thomas Massie (R-KY), James Comer (R-KY), and Chellie Pingree (D-ME). Charlotte's Web stock has soared over 17.5% as news of the bill sends a wave of optimism across CBD stocks.
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“The last two Farm Bills were landmark successes for hemp, but we are still very early in this process, and growers need regulatory certainty,” Peterson said. “This bill will allow FDA to regulate CBD that comes from hemp as a dietary supplement, providing a pathway forward for hemp-derived products.”
Thomas Massey said, “In its first year, Kentucky’s industrial hemp industry added hundreds of new jobs and $100 million to the state’s economy! I’m confident H.R. 5587 will be another step in the right direction for industrial hemp.”
Charlotte's Web stock is currently trading for $8.02.
The bill will now be referred to the Agriculture and Energy and Commerce Committees, with a provision requiring the US Department of Agriculture (USDA) to study the “regulatory and market barriers for farmers engaged in hemp production.” While no timeframe can be given for the passage of the bill through the bureaucratic process at this early stage, it is undoubtedly a further step in the right direction for the CBD industry and could signal more gains ahead for Charlotte's Web Holdings.
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