Cannabis Stocks Drop As Shutdown Deal Tightens Hemp-THC Rules

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The U.S. government funding bill to end the shutdown included language tightening rules on hemp-derived THC products.

  • The provision bans online, gas station, and corner store sales of intoxicating hemp products, including delta-8, starting in 2026.
  • The rules are set to take effect in 2026, creating new compliance requirements for producers and retailers.
  • Tilray criticized the legislation, warning that it may prompt consumers to turn to unregulated alternatives.

Cannabis stocks were trading lower in afternoon trade on Thursday amid broader weakness in the equities market after the U.S. government funding bill to end the shutdown included language tightening rules on hemp-derived THC products.

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Tilray Brands (TLRY) and Canopy Growth (CGC) shares fell more than 7%, while Green Thumb Industries (GTBIF) dipped 2.4%. Retail sentiment was ‘bearish’ around Tilray’s stock, according to Stocktwits data. Green Thumb Industries’ stock saw retail sentiment trending in ‘bullish’ territory over the past day, while retail sentiment around Canopy Growth’s stock trended in the ‘extremely bullish’ zone.

New Hemp Rules Take Effect in 2026

The funding legislation includes a provision banning the “unregulated sale of intoxicating hemp-based or hemp-derived products, including delta-8, from being sold online, in gas stations, and corner stores,” according to a Senate Appropriations Committee summary. The rules are set to take effect in 2026, creating new compliance requirements for producers and retailers.

Tilray criticized the move, calling it a “misguided” step that could push consumers toward unregulated alternatives. “Prohibition and overly restrictive measures do not work,” the company said in a statement on Wednesday.

Retail Traders See Upside

One Stocktwits user noted that the federal hemp ban increases the upside and that it’s a good opportunity to buy the dip.

Another user highlighted the optimism of investors buying cheap shares, anticipating that a rescheduling announcement for cannabis may be on the horizon later this year or next year. 

The regulatory changes also weighed on broader cannabis-focused exchange-traded funds. AdvisorShares Pure U.S. Cannabis ETF (MSOS) fell more than 5% in afternoon trade on Thursday, while the Cambria Cannabis ETF (TOKE) dropped 1.4%. 

Read also: Circle Stock Gains Pre-Market After JPMorgan Turns Bullish, Cathie Wood’s Ark Invest Buys The Dip

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