Vroom, Shroom! Psychedelics Legalization Accelerates
In 1967, as the psychedelic rock group The Doors was getting ready to play “Light My Fire” on The Ed Sullivan Show, a producer asked lead singer Jim Morrison to change the line “Girl, we couldn’t get much higher” to “Girl, we couldn’t get much better.” The iconic variety show, which aired live on CBS every Sunday night, disapproved of the word “higher” because of its drug connotations.
Morrison agreed backstage, but during the actual performance he belted out the word “higher” anyway, an act of defiance that got The Doors permanently banned from the show.
Fast forward to 2023, and lawmakers throughout the U.S., even those in red states, want to make it easier for citizens to not only use marijuana, but psychedelics as well. Nowadays, even middle America wants to get higher.
Ed Sullivan would have been appalled.
With the increasing legalization of psychedelics across America, we’re witnessing nothing less than a revolution. The time to invest is now, before psychedelic drugs become the status quo.
According to the Journal of the American Medical Association, 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.
The first two months of 2023 have witnessed accelerating efforts in audacious drug policy reform, with the introduction of several new bills that seek the legal normalization of psychedelics, especially psilocybin.
Every time one of these laws gets enacted, psychedelic drugs get closer to mass consumer use, creating new investment opportunities. Here’s the current state-of-the-states as it pertains to psychedelics legislation in the U.S.
The Connecticut House Judiciary Committee is considering proposed legislation that would decriminalize possession of psilocybin, which is the active ingredient in “magic mushrooms.”
The bill proposes that people found in possession of up to one-half ounce of psychedelic mushrooms would face a civil penalty of $150 for a first offense. For each subsequent offense, the fine would be between $200-$500.
A bill introduced by Sen. Rachel Ventura (D) would compel the state’s Department of Financial and Professional Regulation (DFPR) to “authorize the distribution of, and make publicly available, psilocybin for medical, psychological, and scientific studies, research, and other information.”
Under the bill, researchers would be allowed to examine the “safety and efficacy of psilocybin and other entheogens to treat mental health conditions, including, but not limited to, addiction, depression, anxiety disorders, headache disorders, and end-of-life psychological distress.”
DFPR would be mandated to accept licenses for psilocybin manufacturing, service centers, therapeutic sessions, and testing.
Rep. Jeff Shipley (R) recently filed a bill to remove psilocybin and psilocyn from the state’s list of controlled substances, effectively legalizing the psychotropic substance.
In 2021, Shipley introduced an identical measure before a legislative committee. The bill didn’t advance, but recent moves in other states to legalize psilocybin (notably Colorado in the November 2022 midterms) inspired the lawmaker to resubmit his bill.
Sen. Patricia Jehlen (D) and Rep. Lindsay Sabadosa (D) recently introduced legislation that would legalize several types of psychedelic drugs for adults 18 and older.
The bill asserts that the following activities would not be illegal for adults:: “The possession, ingestion, obtaining, growing, giving away without financial gain to natural persons 18 years of age or older, and transportation of no more than two grams of psilocybin, psilocyn, dimethyltryptamine, ibogaine, and mescaline, excluding the weight of any material such as water, plant and fungi material of which the substance is a part or to which the substance is added, dissolved, held in solution, or suspended.”
Rep. Dan Houx (R) recently filed legislation that would authorize a research partnership between state health regulators and a U.S. Department of Veterans Affairs (VA) hospital to study the “efficacy of using alternative medicine and therapies.”
The alternatives mentioned in the bill include psychedelic drugs such as psilocybin, MDMA, and ketamine.
Read This Story: The Big Biotech Story of 2023? Psychedelics (No, Really)
The bill wants researchers to study the potential therapeutic benefits of psychedelics on such ailments as chronic depression, post-traumatic stress disorder, and people in hospice care for terminal illnesses. State-level public health officials would be required to carry out clinical trials involving psilocybin.
Rep. Christine Trujillo (D) has filed a bill to establish an eight-member “psilocybin advisory group” appointed by the governor that would be responsible for studying and making recommendations on the “feasibility” of creating a psilocybin therapy program in the state for patients with mental health conditions that have been unresponsive to conventional treatments.
Advisory group members would be required to consider policies around psilocybin cultivation, manufacturing and dispensing, as well as “treatment guidelines for the use of psilocybin-derived products to treat certain mental health issues, including patient selection and provider training and certification.”
The advisory group would further need to “analyze research findings related to the use of psilocybin to treat patients with certain mental health or substance use disorders in a clinical setting” and “monitor policy developments related to the establishment of similar programs in other states, including legal and regulatory issues.”
Assemblymember Pat Burke (D) recently introduced a psilocybin therapy legalization bill (see tweet).
Under the proposal, a psilocybin Assisted Therapy (PAT) grant program would be established to “provide veterans, first responders, retired first responders, and low income individuals with the funding necessary to receive psilocybin and/or MDMA assisted therapy.”
Rep. Joseph Troiano (D) introduced legislation that would lift criminal penalties for possessing, dispensing or selling psilocybin, while establishing a new “Psychedelic Therapy Advisory Working Group” to study the therapeutic potential of psychedelic drugs.
The group would “examine the use of psychedelics to improve physical and mental health and to make recommendations regarding the establishment of a State program similar to Connecticut, Colorado, or Oregon to permit health care providers to administer psychedelics in a therapeutic setting.”
Editor’s Note: Every portfolio should have exposure to companies in the cannabis and psychedelics industries. That’s why I’ve launched a new trading service.
Called Marijuana Profit Alert, my publication is your guide to reaping profits from the investment bonanza in marijuana, psilocybin, and other psychotropic drugs. Click here to learn more.
John Persinos is the editorial director of Investing Daily.
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