Accessibility And Legality: Psychedelic’s Path A Decade After Colorado’s Legalization

Psilocybin and psychedelics in general are substances that have been with us for decades. But in its recent history one particular milestone marks a before and after: the legalization of cannabis for recreational use in Colorado in 2014.

Today, ten years later, more than 100 million adults in the United States have gone from not having legal access to cannabis to being able to get what they need at their local dispensary. While the rescheduling of cannabis is being discussed, the legalization conversation is now turning to psychedelics, where both promising scenarios and specific challenges arise simultaneously.

The Hype Around Psilocybin and Psychedelics

It is not news that psilocybin is at the forefront of mental health treatment research, with a burgeoning economy connected to it. The global psychedelic drug market, valued at $2.9 billion in 2023, is expected to grow to $8.7 billion by 2033, driven by substantial financial investments into psilocybin research and supporting institutions, including the following:

• Leading Universities: Institutions like Johns Hopkins have established centers dedicated to psychedelic research. Johns Hopkins’ Center for Psychedelic and Consciousness Research was launched with a $17 million donation from private donors.
• Research Studies: Between 2019 and 2024, there have been 104 studies on psilocybin, backed by millions in grant money.
• Investment: Year 2023 saw over $2.5 billion in investments in the psychedelic sector, with significant contributions from billionaires like PayPal co-founder Peter Thiel.

The Economic Burden of Mental Health Disorders

While significant, investment in psychedelics research is minimal compared to the annual cost of mental health problems in the U.S., estimated at $282 billion. Disorders such as depression, PTSD and substance abuse place a considerable burden on businesses, the healthcare system and the economy as a whole. These costs make a strong case for investing in psychedelic treatments.

Psychedelic Therapy

Despite the promises, no psychedelic drug has received FDA approval to treat psychiatric disorders because of the associated risks. However, providers continue to offer psychedelic-based therapy, which consists of sessions with trained clinicians. Treatments can be costly, which could limit access to psychedelic therapy if these drugs receive FDA approval, highlighting the rush by entrepreneurs to profit from the treatments.

In contrast, as noted by the National Institute on Drug Abuse (NIDA), illicit psychedelics sold on the street are relatively inexpensive and have are gaining in popularity among young adults.

Accessibility And Legality

As the debate on expanding legal access to psychedelics evolves, public discourse about a retail psychedelic market remains sparse. Most debates focus on therapy, religious exemptions or supervised retreats. However, these segmented approaches still leave many without access. Not everyone can get a prescription, afford supervised programs, or feel compelled to join a religious group for exemptions. Decriminalizing psychedelics alone won’t significantly broaden access either.

The State of Psychedelic Retail Conversations

Ten years after Colorado, Beau Kilmer, co-director of the RAND Drug Policy Research Center, observes similar early movements in state psychedelic policies. As states allocate funds toward research and discuss legalization, the question of retail psychedelics has quietly emerged.

“State policymakers, whether they like it or not, are going to start confronting these conversations,” Kilmer told Vox.

Retail sales might fill these gaps, but the idea raises concerns among advocates due to the inherent risks of psychedelics and the potential for a hasty rollback to prohibition if commercialization goes awry.

Exploring Retail Models For Psychedelics

So, what are the possible retail models? A RAND report, along with Transform Drug Policy Foundation’s “How to Regulate Psychedelics,” outlines four possibilities, based on the models already in use for cannabis:

Government Monopoly: Similar to how some states handled alcohol post-Prohibition, this model could ensure product safety and limit aggressive marketing.

Non-Profits or For-Benefit Corporations: This approach limits licenses to organizations with public health or equity goals, potentially balancing commercial excesses.

Social Clubs: Modeled after cannabis social clubs in countries like Uruguay and Spain, these provide on-site locations for purchase and use, integrating community support.

For-Profit Sales: The dominant model in the US cannabis market, it introduces competition but also risks aggressive marketing and regulatory pushback.

Regulatory and Design Considerations

Beyond similarities, Kilmer points out key differences between cannabis and psychedelics, as psychedelic consumers are less price-sensitive, supervised use is more common, and infrequent users dominate the market.

Success in any model hinges on various considerations: who manufactures and ensures quality control, packaging regulations, informed consent communication, public education strategies, advertising limits, dosage restrictions and harm reduction information.

New York’s Psychedelic Permit Proposal

A potentially balanced approach comes from New York State Rep. Amy Paulin. Her bill proposes a permit system for psilocybin, requiring health screenings, an educational course and a test. Permit holders could buy from licensed vendors and grow mushrooms at home. This model adds protection by focusing on licensed consumers, emphasizing safety while expanding access.

The Path Forward

Kilmer emphasizes the need for more data and analysis. “Once I really started digging in and crunching the numbers, I realized that a lot of the data we need just doesn’t exist,” he said. With retail legislation already in progress, rapid data collection and thoughtful regulation are critical.

Cover image made with AI