Under the National Gene Technology Scheme, organisms modified using the SDN-1 technique will no longer be regulated as a genetically modified organism.

This is because organisms modified by this technique are considered indistinguishable from organisms that have naturally occurring mutations.

Primary Industries Minister Guy Barnett said this decision by the federal government did not pose a risk to the 10-year extension of the state's GMO moratorium.

"However, it may create issues for businesses that export to markets where SDN-1 modified organisms continue to be considered or regulated as GMOs," he said.

Mr Barnett said a regulation would be made under the state's Gene Technology Act to ensure that SDN-1 modified organisms were regulated as GMOs in the agri-food sector for marketing purposes.

This was decided after stakeholder consultation, he said.

"This will maintain the status quo and provide a clear and consistent message in the market place for those Tasmanian businesses and industries that rely on Tasmania's GMO-free status," Mr Barnett said.

Greens leader Cassy O'Connor said Mr Barnett should be commended for listening to the views of her party and industry.

But she said the regulations under the state's act may be able to deal with the new gene-editing technology approved at a national level as federal law prevailed over state law.