Tommy Washbush
A selection of THC products at Dank of America at 1222 Williamson St.
Businesses selling hemp-derived products line State Street, making up a visible part of Madison’s retail economy. But many owners are now staring down major federal changes that could make the products they sell illegal by November 2026 unless Congress acts.
“We're not planning on much of a future, unfortunately,” Matt Nelson, co-founder of Herbal Aspect, tells Isthmus. “We've been building this business for five years. You know, it's a seven-figure business...and now for no good reason, it's all being undone.”
Nelson — who owns five businesses across the Madison region — says the worst part is the potential laying off of his 22 employees.
“In an ideal situation, we can keep a store open with whatever regulated products we can sell, keep some core members of our team,” Nelson says. “They love the company, so they all kind of want to stick it out to the end. You know, we'll give them as much heads up as we can.”
A loophole in the 2018 Farm Bill effectively legalized hemp-derived THC products by defining hemp based on delta-9 THC concentration, allowing other intoxicating cannabinoids to proliferate like delta-8. In 2025, Congress passed legislation that narrowed the legal definition of hemp, effectively banning most hemp-derived THC products on shelves by late 2026.
While many states responded to the 2018 legislation by developing regulatory frameworks or legalizing marijuana outright, Wisconsin remains one of just six states without hemp regulations beyond those in the 2018 Farm Bill.
Local officials, however, have moved ahead. Citing concerns over youth access and accidental ingestion, the Madison city council approved age restrictions, signage requirements and penalties for noncompliant hemp businesses in November.
City council President Regina Vidaver, who sponsored the legislation, says the city’s approach is focused on harm reduction and consumer protection.
“There’s zero regulation right now, and so [we’re] trying to put that regulatory framework on them so that people can know what they're consuming in exactly the same way they know what they're consuming when they're consuming alcohol,” says Vidaver.
Tony Herman, owner of Dank of America, a Madison business with two locations, says the industry generally welcomes reasonable regulations.
“Regulation has been a big topic in the industry for quite some time,” Herman says. “It’s severely unregulated, so to have some regulation is extremely welcome — with the hope that it doesn’t become overregulated and turn into a problem.”
The city policy mirrors a bipartisan state proposal co-authored by Sen. Patrick Testin, R-Stevens Point, and Rep. Tony Kurtz, R-Wonewoc, which would establish a 21-and-over age restriction, truth-in-labeling requirements, independent testing standards and potency limits for hemp-derived beverages. Testin says the legislation was developed with input from the hemp industry to create “common-sense regulations.”
Testin describes Wisconsin’s hemp industry as the “Wild Wild West.”
“There are no age requirements, no restrictions whatsoever,” Testin says. “That has certainly caused a lot of angst and heartburn, not just within the industry, but for a lot of consumers out there.”
Public health data underscores those concerns. Between September 2023 and August 2025, Dane County recorded 167 THC-related EMS calls involving people under 21, including four calls in recent months for children under 10, according to statistics released by Public Health Madison and Dane County in September.
Unlike marijuana, hemp-derived THC products can be sold at gas stations and grocery stores, including locations near schools. Without clear labeling, officials say accidental ingestion is an increasing concern.
“A lot of the products are marketed in a way that looks like candy or the drinks just appear to be seltzers,” Vidaver says. “It can be difficult for even a parent to know if their kid is ingesting something intoxicating.”
While some local businesses, including Herbal Aspect and Dank of America, voluntarily check IDs and test their products in the absence of statewide regulation, both officials and business owners say inconsistent enforcement remains a problem.
“We've tried to operate in the way we want the laws to be written so everybody is carded,” Nelson says. “We actually have pretty strict protocols for even moving product in between stores.”
In 2024, Public Health Madison and Dane County surveyed 68 retailers selling hemp-derived products. While 71% of stores reported having a 21-and-over policy, department staff were asked for ID in just four of 13 stores where they purchased a product or received a free sample, according to the survey.
Dank of America’s Herman also emphasizes the importance of independent testing. While his company ensures its products meet medical marijuana quality standards, he says that without formal regulations, there is little to prevent contamination from heavy metals or mold.
“You have to test for mold, E. coli and heavy metals,” Herman says. “That should be a minimum standard when you’re selling a product to another human being.”
Vidaver says the city’s legislation will also license hemp businesses similarly to alcohol retailers, with public health officials working to transition the Alcohol License Review Committee into an Intoxicating Substances Review Committee.
“If you look at State Street, the density of THC shops is very high,” Vidaver says. “When visitors come to the city and walk down our main downtown shopping street, and every other shop is a THC shop, it’s not a good look.”
Nelson says that while most of the city council’s regulations align with practices Herbal Aspect already follows, one provision poses a significant problem: prohibiting new businesses from selling hemp-derived products within a quarter-mile of schools or parks.
“Effectively, that rule means no one can open a new hemp store,” Nelson says. “There’s almost nowhere in this town that’s more than a quarter-mile from a park or a school.”
Testin and Kurtz’s bill is one of several bills state legislators are weighing to address hemp and marijuana in Wisconsin. Another bipartisan bill introduced by Sen. Eric Wimberger, R-Oconto, creates a three-tier system for hemp modeled after the alcohol industry, separating manufacturers, distributors and retailers and grandfathering in current alcohol-license holders.
In testimony to the Assembly Committee on State Affairs in November, hemp industry advocates accused Wisconsin’s powerful alcohol lobby, the Tavern League, of pushing for the legislation. Herman also criticized the bill.
Tommy Washbush
Matt Nelson at Herbal Aspect at 2017 Winnebago St.
Nelson at Herbal Aspect on Winnebago Street: 'We're not planning on much of a future, unfortunately.'
“I think beverage companies are losing millions to the cannabis industry,” Herman says. “This [regulation push] is happening fast because some very powerful people are losing a lot of money.”
Another Republican-led bill would effectively ban hemp in Wisconsin.
Testin says his and Kurtz’s bill fits the “Goldilocks” approach.
“We've got three bowls of porridge. One is a little bit too cold — that's the bill that would outright ban these products. You got one that's a little too hot, where you have them thrown all into the three-tier system, like alcohol. And then I think ours finds the right balance and the right approach,” Testin says.
Testin says it was “truly clear as mud” whether the passing of his bill could protect Wisconsin’s hemp industry in the face of the federal loophole closure.
“I'm hopeful and optimistic that Congress will undo what they did, but in the event that they don't, we still need to make sure that we have some regulatory framework at the state level because whether individuals like these products or not the horse is out of the barn and you can't put the genie back in the bottle and these are widely popular for individuals that utilize them,” Testin says.
Testin also says the looming federal changes could create a larger vacuum for black market products in Wisconsin. For business owners like Nelson and Herman, the uncertainty has upended long-term planning.
Herman said Dank of America also operates as an event space, lounge and gallery, giving the business alternative revenue streams if hemp products are no longer legal.
“We’re not just a cannabis dispensary,” Herman says. “We’re a cultural gathering spot — a lounge, an event space, an art gallery. It’s not all about cannabis sales.”
Testin is optimistic that lawmakers could advance the bill before the session ends Feb. 19, saying they are considering amendments to build a broader consensus:
“My hope is that we get something done in the next couple of weeks before the session wraps up and everyone heads back to their districts for another wild ride in Wisconsin politics.”
