Until recently, the national sentiment around psychedelics has been lukewarm at best. But last year, the U.S. Food and Drug Administration boldly broke tradition with the Federal Government’s historically hardline approach to controlled substances. In June 2023, they published comprehensive guidance on the use of psychedelics in clinical settings, paving the way for a new national frontier in mental health treatment.
Psilocybin-assisted therapy is an increasingly proven, science-backed approach that represents a viable supplement to traditional mental health counseling. Studies conducted at reputable institutions like Johns Hopkins University have found that psilocybin is safe, effective, and can produce long-lasting benefits for patients suffering from varying degrees of depression, obsessive-compulsive disorder (OCD), anxiety, life transition stress, and more.
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In 2022, Colorado became the second state to decriminalize active compounds found in certain psychedelics, following Oregon’s example two years prior. The new rules made it legal for residents over the age of 21 to grow, possess, gift, and use psilocybin without the fear of arrest or prosecution. There are no quantity limits, but residents are prohibited from public consumption and restricted to private use in their homes or at a healthcare facility. Even in clinical settings, sales above 14 grams will remain illegal, and growing is restricted to 12-by-12 foot enclosures.
Colorado’s psilocybin therapy law, known as the Natural Medicine Health Act (NMHA) of 2022—or more colloquially, Proposition 122—tasks the Natural Medicine Advisory Board with generating a plan for supervised use in clinical settings. The licensure program affiliated with the NMHA is set to take effect on September 30, 2024, at which point healthcare providers will be eligible to file applications with the state and request authorization to render psychedelic-assisted treatment to patients.
While personal possession and use are entirely legal under the NMHA, the parameters around distribution are far less clear. Treatment centers hoping to get an early edge in the market may only administer psilocybin for the express purposes of harm reduction or support. Additionally, distributors cannot advertise, which poses its own challenges for sustained revenue models. The law also does not permit sales through dispensaries.
The lack of specificity around distribution has led to what some are calling a ‘gray market,’ where professional mental health professionals use the statute’s gifting loophole to provide clients with psilocybin and then simply charge for services. Once the NMHA’s final provisions go live in September, therapists and other licensed professionals will be able to bill for the drug alongside any facilitated use they administer to their patients.
In summary, Colorado is poised for a transformative year in 2025 regarding psilocybin legislation, with ongoing legislative efforts and preparations for regulated therapeutic use taking center stage.
How Do Laws on Psilocybin Use in Colorado and Oregon Differ?
Both Colorado and Oregon are trailblazers in the field of psychedelic therapy. Their respective laws represent much-needed progress toward a wider selection of treatment options for patients struggling with mental health. However, each state has important distinctions in their regulations that impose vastly different requirements for those individuals interested in pursuing psilocybin-assisted therapy.
Oregon’s law, commonly referred to as Measure 109, is predominately programmatic in nature. It calls upon the Oregon Health Authority (OHA) to establish governance around the licensure and facilitation of monitored psilocybin use. The OHA was initially given two years to fully implement the program, as well as define licensure requirements, dosage standards, and packaging rules. Measure 109 also allowed localities the option to bar psilocybin manufacturers and service centers from certain areas and outright restricted them from incorporated cities altogether.
Colorado’s law is comparable to Oregon’s, but with a few important caveats. In some ways, the NMHA gives greater freedoms to its state’s residents through legal personal consumption, growth, and dispensation. Oregon’s Measure 109 does not provide the same allowances and explicitly details that psilocybin consumption may only occur in a facilitated setting. Residents are prohibited from growing, owning, or distributing psychedelics.
Colorado’s timeline is also far more aggressive. Whereas Oregon was able to roll out their program over the span of two years, Colorado is pushing its Natural Medicine Advisory Board to meet much more expeditious deadlines; the NMHA was passed in 2022, signed into law in summer 2023, and is expected to reach full implementation by the end of 2024.
Finally, the details of the two states’ laws differ drastically. Oregon’s law focuses strictly on psychedelic fungi, specifically psilocybin. On the other hand, Colorado’s NMHA is broader in its approach, decriminalizing five, specific substances, including dimethyltryptamine, or ‘DMT.’ Colorado’s facilitated treatment provision remains limited to psilocybin, however.
Odyssey is currently operating in Oregon with service center partners in Portland, Bend, and Ashland with plans to partner with similar evidence-first facilitators in Colorado upon its full implementation.
