The Texas Supreme Court ruled Friday that state regulators may criminalize Delta-8 THC, the intoxicating compound found in some hemp products — a significant blow to an industry fighting for its survival.

The ruling, which reverses a lower court decision, says the Department of State Health Services can enforce rules it set in 2021 that classified Delta-8 as an illegal substance.

The change primarily affects products containing Delta-8, a milder form of THC found in many gummy, candy and vape products, including at gas stations and hemp-focused retailers. But the court’s finding that the Department of State Health Services has broad authority to regulate controlled substances could have wider implications for the industry.