We’re suffering through the bitter polarization of American politics, as well as the relentlessly inane “culture war.” So it’s counter-intuitive that ordinarily feuding Democrats and Republicans are joining hands and singing kumbaya over…psychedelics. It’s an indication that these once-taboo substances are entering mainstream society and becoming Big Business.

A bipartisan coalition of congressional lawmakers this week is promoting an amendment to a spending bill that would expedite scientific research into the therapeutic benefits of certain psychedelics, such as psilocybin (the psychoactive ingredient in “magic mushrooms”) and MDMA.

The amendment drafted by Reps. Lou Correa (D-CA) and Jack Bergman (R-MI) is being promulgated as part of appropriations legislation covering Military Construction, Veterans Affairs (VA) and Related Agencies.

The House Rules Committee is set to meet on July 25 to determine whether the amendment should progress to the House floor for a vote.

A new national poll released in June by the UC Berkeley Center for the Science of Psychedelics shows that 61% of Americans favor legalizing psychedelics (see chart).

Rep. Correa stated Monday:

“Our nation’s veterans continue to needlessly suffer tragic rates of suicide and opioid overdose deaths, and it’s crucial that the VA do all it can to ensure that those who would benefit most from these potentially lifesaving therapies can get access to them, as soon as possible. Congress has the power to fix this, and with this amendment, we’ll push the VA to research the impact of breakthrough therapies, like psychedelics, that are already saving the lives of veterans in this country.”

The lawmakers’ amendment is designed to encourage the VA to carry out “large-scale studies” into drugs like psilocybin and MDMA that the U.S. Food and Drug Administration (FDA) has designated as “breakthrough therapies.”

In a groundbreaking move on June 23, the FDA unveiled comprehensive guidelines for conducting clinical trials on psychedelic substances. Federal prohibition of psychedelic substances makes it difficult to study their benefits, requiring researchers to grapple with bureaucratic red tape and delays. Companies engaged in the development of psychedelic drugs were heartened by the regulatory clarity provided by the FDA’s new guidance.

The amendment’s sponsors also are the founding co-chairs of a congressional psychedelics caucus that promotes research into psychedelic substances. The caucus is examining empirical data on psychedelic-assisted therapies and is laying the groundwork for expanded clinical research and future federal funding.

The synopsis of the proposal posted by the Rules Committee says it “increases and decreases the Medical and Prosthetic Research account at the Department of Veterans Affairs to ensure the VA conducts large-scale studies into the efficacy of drugs that have FDA-designated Breakthrough Therapy status to treat post-traumatic stress disorder through VA-administered drug assisted therapy trials.”

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Rep. Bergman said Monday:

“We are suffering from a mental health crisis in our Nation, and Veterans and servicemembers are right at the forefront of this crisis. This amendment will help steer the federal government towards doing more and providing better options to help our Veterans overcome some of the hardest battles they will fight.”

As these efforts unfold on the federal level, an increasing number of states and localities are legalizing psychedelics. The stakes are getting huge for investors.

According to the Journal of the American Medical Association (JAMA), there are more than 50 publicly traded companies related to the development or administration of psychedelic drugs in the U.S., with at least three valued at more than $1 billion. The U.S. market for psychedelic substances is projected to grow from $2 billion in 2020 to $10.75 billion by 2027. JAMA predicts that most states will allow access to psychedelics over the next 10-15 years.

Editor’s Note: As cannabis and psychedelics shed legal restrictions and social stigmas, some related equity investments are superb. But many others are not. You need to conduct due diligence.

That’s where my publication, Marijuana Profit Alert, comes in. By applying my proprietary screening methodologies, I pinpoint for subscribers the most attractive plays on the psychotropic revolution. To learn more, click here.

John Persinos is the chief investment strategist of Marijuana Profit Alert.

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