As Colorado kicks off 2025 by opening applications for psilocybin businesses, other states may soon follow suit. Nevada and Minnesota’s Psychedelics Task Forces have recommended implementing regulated psychedelic programs and reducing criminal penalties. Following the FDA’s denial of MAPS’ new drug application for MDMA-assisted therapy last year, state Task Force reports highlight a familiar divide: states are advancing faster than the federal government, much like the early days of cannabis reform. These recommendations not only aim to serve citizens through regulated access but also stress the importance of revising policies to expand clinical research on the therapeutic potential of natural medicines. As legislative sessions begin, industry stakeholders and the public can anticipate a wave of state lawmakers pursuing similar initiatives.
Nevada
In June 2023, Nevada established the Psychedelic Medicines Working Group (“Group”) through the passage of Senate Bill 242. Under the Department of Health and Human Services, this 15-member Group was tasked with studying the science behind psychedelics, particularly psilocybin and psilocin, and their potential effects on overall wellness and treatment of mental health conditions. The Group also examined federal, state, and local laws governing the therapeutic use of psychedelics and developed a comprehensive plan to enable access to such therapies.
After approving its final report in December 2024, the Group proposed a series of legislative and administrative measures to establish a regulatory framework for psychedelic therapy in Nevada. Central to its recommendations is the creation of legislation during the 2025 session to launch a program providing access to psychedelic-assisted therapy. To support accessibility, the report calls on the Division of Insurance and Department of Business and Industry to create policies that classify this therapy as mental health care, allowing it to be covered by insurance.
Additionally, the report outlines pathways to establish a state-regulated program while recommending reduced criminal penalties for entheogenic plants and fungi. To further advance these efforts, the report suggests that the state legislature consider rescheduling psilocybin or pursuing “breakthrough therapy status” to expand opportunities for clinical research. These reforms aim to position Nevada as a leader in the therapeutic use of psychedelics while addressing regulatory and legal barriers.
Minnesota
At the start of 2025, the Minnesota Psychedelic Medicine Task Force (“Task Force”) released a comprehensive report urging the state legislature to establish a regulated clinical program for the therapeutic use of psilocybin. Formed under H.F. 1884, the 23-member Task Force was charged with advising lawmakers on the legal, medical, and policy considerations surrounding the legalization of psychedelic medicine in Minnesota. The nearly 200-page report also recommends decriminalizing the personal use and possession of psilocybin and allocating funding for further research into the health benefits of psilocybin, LSD, and MDMA.
While some of the recommendations garnered majority support, they fell short of the two-thirds approval required for adoption. These included proposals for psilocybin decriminalization, the creation of state-regulated clinical programs for MDMA and LSD, and the commercial legalization of psilocybin mushrooms for adult use. Although these measures did not advance, they remain valuable groundwork for future legislative efforts as Minnesota continues exploring the potential of psychedelic therapies.
Conclusion
The rising momentum behind state task forces recommending regulated psychedelic programs underscores a significant shift in how psychedelics are perceived and integrated into healthcare and policy. As more states like Nevada and Minnesota explore frameworks for safe, therapeutic use, the movement highlights the growing recognition of psychedelics’ potential to address mental health crises and improve wellness. These efforts also reflect an evolving dynamic where state initiatives are outpacing federal action, paving the way for innovative approaches to public health and criminal justice reform. With legislative sessions underway, the groundwork laid by these task forces may soon catalyze transformative change, making 2025 a pivotal year for the psychedelic movement.