A federal judge has dismissed a lawsuit brought by a Washington, D.C. hemp retailer that sought to block the city from enforcing cannabis regulations against its business.
DeLorean 88, a hemp shop in the District, argued that the 2018 Farm Bill preempted local rules by federally legalizing hemp products with no more than 0.3% THC. The company maintained that because hemp was removed from the federal list of controlled substances, the city lacked authority to treat its business the same as marijuana retailers.
U.S. District Judge Trevor McFadden disagreed, finding that the Farm Bill did not override D.C.’s ability to regulate hemp sales within its borders. The decision allows the city to continue enforcing cannabis rules against unlicensed operators, including those selling hemp-derived products that may be lawful at the federal level.
The ruling underscores the ongoing conflict between federal hemp law and local cannabis frameworks. While the Farm Bill legalized hemp nationwide, it also preserved the power of states and jurisdictions like D.C. to regulate production and sales. For businesses operating in gray areas, the case highlights the risk of relying on federal legalization alone without complying with local licensing requirements.
The order comes as federal lawmakers consider a nationwide ban on hemp-derived THC products.
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