Cannabidiol, or CBD, as the marijuana compound is known, is a product that has become extremely accessible through U.S. retailers.
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But the popularity of CBD makes the product susceptible to chemical contamination by criminals, according to the world’s largest legal marijuana grower.
“When there are no regulations, that’s when the sketchy players prosper and we want regulation,” Canopy Growth CEO Bruce Linton told FOX Business’ Stuart Varney on Friday.
CBD is emerging as a promising remedy to help treat many common conditions like pain, insomnia, and anxiety. The Federal Drug Administration held a hearing Friday on CBD regulation and the substance’s interaction to get a better understanding on the industry’s strategy toward the cannabis related product.
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Linton said the tide is turning to a certain extent toward mass legalization in America.
“I am not sure that the federal government is going to say that it is a recreational platform and everyone can have it,” he said. “I could see them saying, on a medical basis, we’re going to regulate it and put it through the FDA trials.”
The cannabis industry is positioned to expand rapidly in the near future with most U.S. states allowing some form of medical marijuana and others decriminalizing the possession of small amounts. 34 states have marijuana available for sale in one form or another and 10 of those states -- Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington -- allow the legal recreational use of cannabis.
CBD is legal in all 50 states and the U.S. retail market for Cannabidiol is projected to reach $16 billion by 2025, according to a report by New York-based investment bank Cowen.