Powdered alcohol gets federal agency's approval; future in states still fuzzy

The maker of a powdered alcohol says his product has gained approval from the Alcohol and Tobacco Tax and Trade Bureau.

The product, dubbed Palcohol, had received the greenlight briefly last year before the bureau said the label approval had been issued in error. On Wednesday, bureau spokesman Tom Hogue told The Associated Press the issues had been resolved and the product was approved. But Hogue noted that states can also regulate alcohol sales in their borders.

Many states have already moved to ban powdered alcohol, including lawmakers in Colorado who last month advanced legislation to temporarily halt its sale.

Hogue said the bureau's evaluation is centered on whether labels accurately reflect what's in the product, rather than the potential for abuse.