The DEA's position on THC-O acetate as a controlled substance faced a significant reversal with recent court rulings that challenged its stance. A U.S. Court of Appeals for the Fourth Circuit ruled that hemp-derived THCOA is federally legal under the 2018 Farm Bill, contrary to the DEA’s interpretation that classified it as a Schedule I substance. 

Let’s investigate further. 

DEA's 2023 Stance Against THCOA 

In early 2023, the Drug Enforcement Administration (DEA) formally declared that THC-O acetate (THCOA) is a Schedule I controlled substance under the Controlled Substances Act (CSA). 

According to the DEA, compounds like THCOA, which are synthesized from hemp-derived cannabinoids like CBD, do not fall under the 2018 Farm Bill’s legal protections. 

[The Farm Bill legalizes hemp and hemp-derived products as long as they contain less than 0.3% Delta-9 THC by dry weight.] 

The DEA argued that since THCOA is synthesized from hemp-derived cannabinoids and does not naturally occur in the plant, it does not qualify for the hemp exemption.

This announcement caused confusion and concern within the industry. Manufacturers worried that the DEA’s position would lead to enforcement actions against products containing THCOA, and consumers questioned whether they could still legally purchase this novel cannabinoid.

The Case that Challenged the DEA

The recent legal battle over THC-O acetate (THCOA) began when Diamondback Investment Group, an employer, terminated Tonya Anderson, claiming her use of THC-O products violated company policy. The employee sued them in the case known as Anderson v. Diamondback Investment Group.

The Latest THCOA Ruling and Rationale

At the heart of the matter was whether THC-O was federally legal. Tonya’s attorney argued that it was. The case eventually landed in the Fourth Circuit Court of Appeals, where it became a pivotal legal decision about the status of THC-O in the United States.

The Fourth Circuit ultimately agreed with an earlier Ninth Circuit Court of Appeals ruling on Delta-8 THC, which stated that the Farm Bill’s language was unambiguous: it legalizes all hemp-derived cannabinoids, provided they contain less than 0.3% Delta-9 THC. The ruling dismissed the DEA’s argument that synthetic cannabinoids like THCOA fall outside this scope, reasoning that the source of the cannabinoid—whether naturally occurring or synthesized from hemp-derived CBD—was irrelevant.

Additionally, the Fourth Circuit cited the recent Supreme Court ruling overturning the Chevron Doctrine, which historically gives federal agencies like the DEA considerable authority to interpret ambiguous statutes. In light of the Chevron shift, the court argued that it was not required to defer to the DEA's Farm Bill interpretation. Instead, the court decided that the plain and explicit text of the Farm Bill clearly includes THCOA.

Potential Hemp Industry Benefits

The Fourth Circuit and Ninth Circuit Court rulings could bolster the hemp industry against further legal challenges. For example, the DEA recently issued a letter stating that hemp-derived THCA products are prohibited. THCA (tetrahydrocannabinolic acid) is a non-psychoactive cannabinoid found in raw cannabis. Hemp plants convert to THC when exposed to heat, and the DEA has argued that it does not meet the legal definition of hemp.

Although THCA, Delta-8, and THCOA are different cannabinoids, the court’s recent rejections of the DEA’s stances signal that similar legal challenges could render THCA Farm Bill compliant. 

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Congressional Efforts to Ban Delta-8 and Synthetic Cannabinoids

The courts unwaveringly favor the hemp industry today. However, the legislative landscape remains volatile. Congress has been actively considering amendments to close what some see as loopholes in the 2018 Farm Bill that allow for the production and sale of Delta-8 THC and synthetic cannabinoids like THCOA.

In 2023, Rep. Mary Miller (R-IL) introduced an amendment to the Farm Bill reauthorization that would exclude synthesized cannabinoids—those manufactured outside the cannabis plant itself—from the definition of legal hemp. If this amendment passes, it would classify THCOA and Delta-8 THC as illegal despite the Fourth and Ninth Circuit rulings.

Additionally, a House Appropriations Committee spending bill includes provisions that would restrict hemp-derived cannabinoids containing any “quantifiable amount of THC,” which could potentially affect a wide range of products, even CBD.

These efforts seek to regulate psychoactive hemp-derived cannabinoids in the same way as state-controlled cannabis products. 

The Bottom Line

The Fourth Circuit's ruling is a significant victory for the hemp industry, affirming the legality of THCOA and opening the door to future challenges against the DEA. However, the legal landscape remains uncertain as Congress continues to push for stricter rules on Delta-8 THC and synthetic cannabinoids

Contact ACS now to guarantee the purity, potency, and safety of your hemp products. We provide in-depth cannabinoid profiling, including THCOA and 31 other cannabinoids.