It wasn't all that long ago that many investors expected CBD stocks to soar after the U.S. legalized hemp. The reality is that shares of top CBD stocks such as Charlotte's Web Holdings (OTC:CWBHF) have tanked. Corinne Cardina, The Motley Fool's Bureau Chief of Healthcare and Cannabis, recently spoke with former Canopy Growth CEO Bruce Linton about the CBD market. In this Fool Live video, she and longtime Motley Fool contributor Keith Speights follow up on Linton's comments and address the issue of whether or not investors simply expected too much from CBD stocks.

Corinne Cardina: So to transition into getting into some stocks, let's talk about CBD a little bit more. Like Bruce said, the CBD song had been playing really loudly for the past few years. In December 2018, the Farm Bill was passed. Hemp became legal to grow in the US. Charlotte's Web -- that is a big name in CBD, and its stock is down about 76 percent in the past year. Keith, were investors just expecting too much from CBD and where do you think the future of hemp lies?
Keith Speights: On the CBD question. I don't think that investors were necessarily expecting too much, but I think it was easy to overlook the fact that the FDA has an awful lot of say in how CBD is used, and they still have not finalized the regulations on CBD.
I think everyone was excited about the passage of the 2018 Farm Bill. It did legalize hemp throughout the US and that did open the door. But the reality check there was that the FDA still needed to make its decisions on how to regulate this industry. Until that happens, companies like Charlotte's Web, I think are going to flounder.
Now, when -- I won't say if -- when the FDA does finalize those regulations. It could be a great catalyst for these stocks. It could be more middle of the road, but at least there will be some definitiveness to it; the question marks will hopefully go away. So I think the expectations of a big, booming CBD industry aren't unrealistic necessarily, but we still have to wait to see what the FDA is going to decide.
Corinne Cardina: As with anything, we can always trust the cannabis space to bring lots of uncertainty.
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