The first-ever bill to decriminalize all drugs in the US was introduced to Congress on June 15, 2021. Democrat US Reps. Cori Bush (Missouri’s 1st congressional district rep) and Bonnie Watson Coleman (New Jersey’s 12th congressional district rep) introduced the first bill that aims to decriminalize not just cannabis but ALL DRUG possession in the United States.
The house representatives called it a ‘health-centered approach.”
The Drug Policy Reform Act
The Drug Policy Reform Act (DRPA) aims to ultimately abolish criminal penalties for personal drug use at a federal level, meaning nationwide. The ambitious reform also calls for wiping clean criminal records for possession.
At this time, the US attorney general is responsible for overseeing regulatory issues regarding drug possession. Under the act, this authority would be shifted to the secretary of Health and Human Services.
According to the Drug Policy Alliance’s Summary of the Drug Policy Reform act, all of the well-known recreational drugs will be decriminalized: Marijuana, cocaine, heroin, etc. However, the summary did not mention anything about LSD or psilocybin. We had to go to the DPA’s website, but it’s pretty safe to assume that psychedelics will also be decriminalized.
How Could Psychedelic Stocks Be Affected?
At this time, psilocybin and psilocin are labeled Schedule I Controlled Substances. That means it’s illegal to cultivate, process or possess psilocybin mushrooms for personal use or distribution. The Drug Policy Reform act might completely change this, opening up the playing field to a massive psychedelic boom. The same thing seems to be happening with cannabis stocks.
While it’s hard to say what such a massive policy reform could do to the burgeoning psychedelic market. The best guess is that decriminalization will lead to further research and development, and wider acceptance will lead people to try psychedelic mental health treatments over pharmaceutical alternatives. Many people avoid the alternative treatment method for mental health simply because it’s illegal.
In 2020, a watershed moment occurred for psychedelic stocks as some saw triple, even quadruple returns. Many believe that the real win for psychedelic stocks will be FDA approval of drugs for the treatment of depression and mental health.
The example I want to use to illustrate how the US Drug Policy Reform Act of 2021 might affect psychedelic stocks.
It is a penny stock traded on the CSE called Revive Therapeutics Ltd. (CSE:RVV)(NEO:RVV). The specialty life sciences company focuses on the research and development for rare disorders and infectious diseases. The company is focused on using CBD to treat rare inflammation caused by liver diseases. Recently, Revive (CSE:RVV)(NEO:RVV) acquired Psilocin Pharma Corp., advancing their foray into psilocybin-based treatments for various diseases and disorders. The company has even received FDA approval for the phase 3 study of its Bucillamine treatment for mild-moderate COVID-19 cases!
When it was slowly becoming clear that a 2020 Democrat Party win would go through in the US, the market responded. Many psychedelic stocks rose as a possible result. Revive (CSE:RVV)(NEO:RVV) is one such, as this TradingView chart illuminates:
The recent news of the drug reform bill being introduced didn’t have the same effect, but the principle remains sound. People believe that alternative medicine for psychotherapy could compete with big pharma. A Democrat win was a good indicator that laws would ease up to allow this to happen.
And it looks like it is happening! This puts psychedelic and cannabis stocks back on the radar in a big way.
Featured Image: © Alexandervolkov1 | Megapixl.com
DISCLAIMER: This post contains forward-looking statements and should not be taken as investment advice or as guarantees on any future potential or possible returns. This is post is for informational use only, and should not be taken as investment advice.
