Researchers have steadily advanced the field of psychedelic-assisted therapy over the last decade or two. This incremental push partially results from clinical studies that have shown substances like magic mushrooms and their active ingredient, psilocybin, to have the potential to help treat a variety of mental health issues.
Voters in Colorado have again broken new ground with their passage of Proposition 122–now known as the Natural Medicine Health Act–during the 2022 election. This act is significant for making the cultivation, possession, and usage of natural medicines like psilocybin, DMT, ibogaine, and mescaline legal in the state. This passage also spurred the development of an eagerly anticipated psychedelic-assisted therapy industry, now ready to see its very first patients very soon. How this industry operates and succeeds will be a bellwether for future states to adopt similar programs.

Colorado law does not allow retail sales of psilocybin, unlike cannabis, which can be sold both recreationally and medically in the state. But it allows adults 21 and older to grow, use, and share psychedelic mushrooms for personal use. Colorado, of course, made headlines back in 2012 when voters passed the nation’s first adult-use and recreational marijuana program. Here are some of the guidelines found on the state’s Natural Medicine Division website:
Colorado’s Natural Medicine Advisory Board has hammered out the licensing details for the emerging psychedelic-assisted therapy industry it supports since passage three years ago. The Colorado Department of Revenue has designated the Natural Medicine Division to license and regulate businesses that offer psilocybin-assisted therapy. There are five different types of licenses available to applicants for psilocybin-assisted therapy.
Applicants must obtain a natural medicine handler license to operate their healing center locations legally. Once licensed, healing centers may keep up to 10g of dried mushrooms on-site at any given time. Micro-healing center licenses are also available for already existing wellness and therapy centers that wish to integrate psychedelic-assisted therapy into their services offered.
All of those mushrooms aren’t going to grow themselves, so over time, there will need to be a multitude of cultivators to provide the mushrooms themselves to healing centers and therapists. There are two types of licenses available to potential cultivators–a standard tier license allows for 5kg of dried mushrooms to be on site, while a micro tier license permits 750g at a time.
Manufacturers are responsible for creating products from the mushrooms themselves, similar to what extractors do for cannabis edibles and concentrates. Extraction endorsement licenses are mandatory for potential licensees to produce pressed tablets, chocolates, gummies, and tinctures. Tea bags and capsule production don’t require an extraction endorsement license.
A reliable testing framework is already in place for R&D testing firms that work in the state’s recreational and medical cannabis programs. These companies will only need to apply for a license to test natural medicine that’s produced specifically by state-licensed cultivators and not for personal use, psilocybin.
Potential healers specializing in natural medicine are a huge part of psychedelic-assisted therapy. These people are recognized as facilitators according to the program guidelines and must undergo a vigorous facilitator training program certified by the state.
Handlers are anyone who works in any of the above roles and physically handles any psilocybin products at any point in the process. Licenses for facilitators and handlers of natural medicine are issued by the Department of Regulatory Agencies.
Owners of natural medicine therapy locations must apply for an owner’s license to operate their businesses legally in Colorado. This license type provides the same access as a Natural Medicine Handler license, which is not additionally required when an applicant already holds an owner’s license. Owners can also have a vested interest in five locations in total, while hybrid owner-facilitator licenses are also an option.
Colorado takes first place in history for its adult-use cannabis program, but when it comes to psilocybin health services, Oregon takes the cake. Voters in Oregon passed Measure 109 via the ballot box in 2020, marking the first time any state allowed licensed providers to use psilocybin in a therapy setting for people 21 and over.
This undertaking paved the way for Oregon’s current Psilocybin Services Act, which only provides for psilocybin during treatment, compared to Colorado’s plan to eventually roll the program out to other psychedelics like DMT, mescaline, and ibogaine. Also, Oregon’s Psilocybin Services Act currently only decriminalizes minor possession of psilocybin, whereas Colorado has allowed for complete legal personal use possession with no limits for adults 21 and over.
Oregon and Colorado do not require a prescription from a medical professional for eligibility for psychedelic-assisted therapy, however, there are several steps in the process. These include an initial health screening, preparation and support plans, administration of the psychedelics themselves, and a follow-up integration session between facilitator and patient.
Anyone seeking to be a hands-on facilitator therapist in either state can do so without a clinical license. Both states require enrollment in a state-sponsored curriculum training program, however, Colorado has some additional training, practicum, and continued education requirements.
Doctors’ offices and wellness centers in Colorado can host psychedelic-assisted therapy sessions. These locations must securely store psilocybin when not in use, especially if they also offer traditional treatments during other hours.
Existing wellness and therapy centers can apply for a micro-healing center license that can integrate psychedelic-assisted therapy into their offerings for their patients. Traditional wellness and therapy centers in Oregon aren’t fortunate enough to have the same flexibility. Therapy can also take place at authorized homes and care facilities outside of licensed healing centers in Colorado for anyone with an approved disability or who may be in hospice.
READ: Researchers Explore Psychedelic-Assisted Therapy for Identity-Based Trauma

Colorado’s first designated psilocybin-assisted therapy center is getting lots of attention lately. The Center Origin in Denver, a yoga and wellness studio since 2023, is now ready to begin administering psilocybin therapy sessions as soon as the first batch receives approval.
The Center Origin will start with 10 patients a month, according to its CEO and co-founder, Elizabeth Cooke, in a recent interview. The company will then see how successful things go first before expanding its pool of patients. Guided trips with psilocybin and a licensed facilitator will integrate facets of yoga, massage, sound therapy, meditation, and aromatherapy to enhance and personalize experiences. Cooke also mentioned in the interview that prospective patients can expect to pay $3,500 for a full therapy plan, plus the cost of the psilocybin.
Psychedelic endeavors like what patients will experience at the Center Origin and many other subsequent healing centers in Colorado can dictate the future of this type of therapy. Colorado boasts a larger population sample than Oregon, featuring considerable demographics of both wellness and psychedelic advocates.
The hope is that, just like the Centennial State’s historic adult-use adoption, more states will see that safe access coupled with legitimate professional support is a reality for this type of therapy and will begin their own programs. Establishing those important factors can give people more choices than just relying on pharmaceuticals for conditions like PTSD, addiction, and depression, and may lead to a better quality of life without the long list of side effects.
Sign up for our newsletter
Get your medical marijuana card today
Sign up in under 5 minutes
Start By Selecting Your State