June 20, 2020 – 8:06 am
Here’s the latest CBD news:
- The European Industrial Hemp Association has approved a plan for CBD and THC studies with a goal of novel food authorization.
- The National Credit Union Administration (NCUA) has issued an update on hemp banking rules for credit unions.
Table Of Contents
- European Industrial Hemp Association Approves CBD & THC Studies
- National Credit Union Administration Issues Hemp Banking Rules Update
European Industrial Hemp Association Approves CBD & THC Studies
Members of the European Industrial Hemp Association (EIHA), the main hemp industry body in Europe, have voted in favor of new studies on CBD and THC.
The “unprecedented” studies are part of a joint novel food authorization application.
Last year, EIHA members agreed to submit a joint novel food application to UK and EU authorities. Just last month, the EIHA released an update, including the costs associated with the joint application.
Previously, the EIHA estimated the cost for the lab analysis of CBD and THC to be $2 million. Now, the EIHA projects almost double that amount ($3.9 million) will be needed to invest in “unprecedented studies” on the toxicology of CBD and THC. The EIHA expects the studies to carry on for the next two to three years.
In a statement, EIHA president, Daniel Kruse said, “We only stand a chance if we jointly bear the exorbitant costs for the necessary toxicological studies and the long procedure ahead of us. This would not be affordable for a single hemp company.”
The EIHA has not said which hemp-derived products or CBD formulations it will include in the novel food applications; however, this study will be filed separately to the two governing bodies: the U.K. Food Standards Authority and the European Food Safety Authority.
Last year, hemp extracts and hemp-derived products containing CBD and other cannabinoids were reclassified as novel foods.
This designation means that manufacturers must have their CBD supplements and foods evaluated before EU authorities will place them on the market. According to the EIHA, leaves, flowers, and extracts that come from industrial hemp have naturally-occurring levels of cannabinoids and therefore do not fall under the scope of EU Novel Food Regulation.
CBD sellers have until March 2021 to gather data on their products and acquire approval from EU authorities.
National Credit Union Administration Issues Hemp Banking Rules Update
The National Credit Union Administration (NCUA) issued a memo to provide some clarity on whether or not credit unions can provide financial services to hemp businesses.
The update was provided because legal hemp-related businesses, “too, have been affected by the COVID-19 pandemic.”
In the memo, NCUA chairman Rodney E. Hood, writes, “Lawful hemp businesses provide exciting new opportunities for rural communities, and credit unions should carefully consider whether they can safely and properly serve lawfully operating hemp-related businesses within their fields of membership.
“It is important that credit unions stay current with the federal, state, and Native American tribal laws and regulations that apply to any hemp-related businesses they serve.”
The memo from the NCUA provides 17 questions and answers about rules for serving the hemp industry, and more. The agency says it is gathering data to better understand and improve the types of services credit unions can provide to help-related businesses.
The NCUA concluded the memo by saying the hemp industry provides “exciting new opportunities” to rural communities, but that credit unions must be careful about the hemp businesses they serve.
“The NCUA encourages credit unions that are serving or considering serving, hemp-related businesses to review all available information related to this evolving industry. As more information becomes available, the NCUA will continue to provide additional guidance.”