In mid-August, the Colorado Department of Revenue finalized legislation on the parameters for psychedelic therapy. This is just one of many steps in a long process of recognizing medical and therapeutic value in psilocybin mushrooms. The substance has been featured increasingly in media since 2018. Colorado is a leading state making progressive regulatory steps regarding psilocybin.
Denver was the first city in the United States to decriminalize psilocybin in May 2019 via Ballot Ordinance 301. The State of Colorado specifically legalized the growth, transport and sharing of psilocybin mushrooms and byproducts in November 2022. Statewide decriminalization following that vote went into effect in January 2023. This June, the Colorado Department of Regulatory Agencies passed requirements for the training and licensing of psychedelic therapy facilitators. The finalized Department of Revenue rules are one step closer for psychedelic therapy programs to move forward. The two departments will work together to determine licensing fees this autumn. Practitioners will be able to apply for licenses by December or early next year.
These steps toward medical applications for psilocybin have been a long time coming. Multiple leading universities have been studying the medicinal and therapeutic possibilities of psilocybin for years. Johns Hopkins University attained government approval in 2000 to study the naturally occurring chemical compound. The Johns Hopkins program resumed research halted nearly four decades earlier.
Psilocybin entered Western academic awareness in the 1950s, when French and Swiss scientists isolated the compound from mushrooms based on amateur study and reports from an American banker who had studied and participated in native rituals in Mexico. Archaeological evidence suggests that hallucinogenic mushrooms have been implemented in ceremonies and rituals for thousands of years in Central America, North Africa and Spain.
In 1960, Harvard University started researching psilocybin. Though the primary focus was on potential therapeutic and psychiatric uses, the Harvard Divinity School also participated in research. Graduate students designed a 1962 double-blind study now known as the Good Friday Experiment, in which half of a group of 20 divinity students received a dose of psilocybin before church service. The study established empirical evidence that psilocybin could induce religious experiences.
While that research was ground-breaking in Western academia, it was also part of the beginning of the end for psilocybin in that era. The Harvard Psilocybin Project was shuttered in 1962 due to concerns from professors and students outside of the program. In 1963, both leading researchers were dismissed from the institution entirely. Within five years, psilocybin, LSD and other previously legal, unregulated substances had been scheduled and prohibited.
What changed? Though ostensibly a response to organized crime, the federal government’s War on Drugs instituted drug scheduling and classified many previously minimally-regulated substances as illegal. In the late 1960s, U.S. elected officials attributed at least 50% of crimes to the influence of drugs. That claim rose to 90% in the 1970s, when Richard Nixon established the Drug Enforcement Administration by executive order.
Psilocybin’s mainstream and institutional renaissance has been gradual. Though the Johns Hopkins research began in 2000, both mention and perception of the compound remained firmly in quiet circles of counterculture and academia until 2018. Google Trends indicates a nearly 30% increase in the search term “psilocybin” in May 2018, coinciding with the release of a book called “How to Change Your Mind” by respected journalist Michael Pollan. The book explores the history of psilocybin and other hallucinogens in depth from medical and cultural perspectives.
In November 2020, Oregon passed Ballot Measure 109, which legalized production and sale of “magic” mushrooms. This was only 18 months after Denver and the city of Oakland, California had voted to decriminalize psilocybin possession. Oregon and Colorado are the only two states that currently authorize assisted adult use. Psilocybin remains federally classified as a Schedule 1 substance “with no currently accepted medical use and a high potential for abuse” per DEA definitions.
Accordingly, Colorado’s Department of Revenue and Department of Regulatory Agencies are ensuring precise regulation and permitting. Administration will only be authorized for licensed practitioners in therapy sessions. Retail sales of psilocybin are not allowed. Labeling must be clear, free of manipulative branding and indicate dosage, harvest date and strain type. Psychedelic therapy will not be offered to individuals under the age of 21. While licensed healthcare and counseling facilities will be allowed to have psilocybin healing centers, they may not administer psychedelics while anyone under the age of 21 is on the premises.
Psychedelics advocates are working hard to create resources for communities and make applying for a license as smooth as possible for healthcare providers. Attorneys with backgrounds in the growing cannabis industry have been studying the evolving legislation for years to support potential clients’ compliance with these regulations.
It makes sense that both legislators and potential practitioners are cautious. It is also easy to see why client demand is steady and even increasing. Johns Hopkins and many other university research programs have been producing study after promising study showing psilocybin efficacy for psychological treatments. Psilocybin therapy has indicated effectiveness for treating alcoholism, PTSD, depression and anorexia, among other addictions and disorders. Some research indicates application for end-of-life treatment to soothe emotional distress in individuals with terminal illnesses.
With Colorado’s legislative guardrails in place, 2025 will show what this compound can do to mitigate the statewide mental health crisis. Learn more about the legislation on the Department of Revenue website.