North Carolina Governor Josh Stein is intensifying efforts to regulate the state’s burgeoning THC market following the release of a preliminary state report on April 2. The North Carolina Advisory Council on Cannabis, established by Stein through an executive order in June, revealed that North Carolina is home to one of the largest unregulated cannabis markets in the U.S., with annual sales exceeding $3.2 billion, as cited in the 2023 U.S. Cannabis Report.
The council identified critical gaps in North Carolina’s intoxicating hemp-derived cannabinoid product market, noting that it lacks sufficient measures to prevent youth access and does not enforce meaningful potency limits or standardized laboratory testing. This absence of regulatory oversight has created a “dangerous policy gap,” leaving the state with ambiguous laws regarding intoxicating hemp products.
The Need for Regulatory Framework
The report describes North Carolina’s cannabis marketplace as a “wild west” situation, filled with uncertainty for consumers, businesses, and law enforcement. The 27-member council, which includes health, safety, and law enforcement officials, is tasked with exploring effective regulatory frameworks for the existing cannabinoid products.
After consulting with various states’ regulators and considering input from medical professionals, the council’s co-chairs recommend an adult-use regulatory model that prioritizes consumer safety and includes protections for medical users. The co-chairs, North Carolina Health Director Lawrence Greenblatt and Robeson County District Attorney Matthew Scott, emphasized the importance of establishing a well-regulated market.
Legislative Considerations Ahead
Despite overwhelming support for medical cannabis legalization among North Carolina voters—71% according to a February 2025 Meredith College survey—the state is among the few that still prohibit it. As the Republican-controlled Legislature reconvenes on April 21 for its 2025-2026 session, lawmakers will revisit several legalization bills, including proposals for a commercial medical program and an adult-use initiative.
Notable members of the advisory council include Reps. John Bell and Zack A. Hawkins, alongside Senators Bill Rabon and Kandie D. Smith, who are actively promoting legalization initiatives. Smith has highlighted her commitment to ensuring that marginalized communities are represented in the legislative process.
Consumer Safety and Market Integrity
The council’s assessment underscores the need for a regulatory framework that adequately addresses the demands for cannabinoid products while disrupting illicit markets. A legal alternative for consumers could enhance public safety and consumer protection. According to the interim report, the legal cannabis market is projected to meet nearly half of U.S. demand by 2030.
The council plans to issue a final report in December 2026, which will provide a comprehensive regulatory framework aimed at ensuring accountability and consumer confidence in North Carolina’s future cannabis marketplace. This strategic approach is expected to address not only consumer safety concerns but also the broader implications for public policy and health.