John Miller
In 2023, Denver, Colorado, decriminalized the personal possession, growing, sharing, and use of psychedelic mushrooms, also known as psilocybin or magic mushrooms. However, the sale of these mushrooms remains illegal, and the city has recently adopted a new licensing law for natural medicines, including mushrooms. This law includes a ban on healing centers within 1,000 feet of childcare centers and K-12 schools, and prohibits advertising natural medicines to minors or misappropriating Native American and Indigenous cultures. While the decriminalization of mushrooms in Denver has sparked interest in the therapeutic potential of psychedelics, it has also led to a gray market with entrepreneurs offering guided experiences and microdosing advice. As Colorado moves towards a more strictly regulated mushroom industry, the future of the local mushroom market in Denver remains uncertain.
| Characteristics | Values |
|---|---|
| Status of psilocybin mushrooms | Illegal |
| Status of mushroom spores | Illegal |
| Status of growing/cultivating mushrooms | Illegal |
| Status of possessing mushrooms | Illegal |
| Status of selling mushrooms | Illegal |
| Status of medicinal marijuana | Legal with prescription |
| Status of foraging mushrooms | Allowed in natural areas, restricted in private areas |
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What You'll Learn
Denver decriminalises magic mushrooms
Denver has become the latest city in the United States to decriminalise magic mushrooms, joining over a dozen other cities that have relaxed laws around the psychedelic fungi. The move comes as part of a statewide shift in Colorado, which has seen the personal use and possession of magic mushrooms legalised for adults over the age of 21.
In 2019, Denver made headlines as the first city to decriminalise psilocybin mushrooms, the psychoactive compound found in magic mushrooms. This landmark decision set a precedent for other cities and states across the country. However, the recent change in state law has led to a repeal of the city's original ordinance.
The new legislation allows adults 21 and older to grow, use, and share psychedelic mushrooms for personal use. While retail sales of psilocybin remain illegal in Colorado, a grey market has emerged, with entrepreneurs offering guided psychedelic experiences, microdosing advice, and supplies. These businesses operate in a legal grey area, as the state prepares to launch a highly regulated psychedelics industry.
To increase affordability, healing centres plan to offer sliding-scale payment options and discounts for veterans, Medicaid enrollees, and low-income individuals. Group sessions are also an option for reducing costs. The state's Division of Professions and Occupations will oversee the regulation of these substances, while the Division of Natural Medicine will manage where they can be grown, manufactured, tested, and administered.
Denver's decision to decriminalise magic mushrooms reflects a growing trend towards the legalisation and regulation of psychedelic substances for therapeutic use. Proponents of these substances argue that they hold potential in treating depression and anxiety, particularly for those who have not responded to other medications or therapies. As Denver and Colorado continue to shape their approach to magic mushrooms, other states will likely look to these early adopters for insights and lessons.
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New licensing laws for natural medicines
Denver has adopted new licensing laws for natural medicines, including psychedelic mushrooms. The city has a history of progressive drug policies, having been the first city to decriminalize psilocybin mushrooms back in 2019. However, the new laws signal a shift towards stricter regulation.
The new licensing laws aim to bring Denver into line with broader state-level changes in Colorado. In 2023, Colorado voters approved Proposition 122, which decriminalized the personal possession, growing, sharing, and use of several natural psychedelic substances, including psilocybin, for individuals aged 21 and over. This change in state law has had a significant impact in Denver, where a "'gray market'" for mushrooms has emerged, with entrepreneurs offering guided psychedelic experiences, "microdosing" advice, and supplies.
The new licensing laws in Denver aim to address the proliferation of these unregulated businesses. Enforcement will now focus on businesses operating without a license, particularly those that charge for related services while giving away the drug for "donations." The city must use local resources to enforce state and local laws regarding natural medicine, and the state's Division of Professions and Occupations will oversee the regulation of these substances.
The new laws also include several specific provisions. Denver will ban healing centers within 1,000 feet of childcare centers and K-12 schools, and natural medicines cannot be advertised to minors or used in ways that misappropriate Native American and Indigenous cultures. Outdoor advertising for natural medicine will also be prohibited, similar to the restrictions on marijuana advertising.
The impact of these new licensing laws remains to be seen, but they represent a significant shift in Denver's approach to natural medicines, particularly psychedelic mushrooms. While the city once led the way in decriminalization, it now joins the broader state-level effort to create a highly regulated therapeutic industry for these substances.
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The grey market for mushrooms
In 2019, Denver became the first city in the US to decriminalize psilocybin mushrooms. However, the city council repealed this law in 2025, following Colorado's state-wide decriminalization of psilocybin. While the new law allows adults over 21 to grow, use, and share psychedelic mushrooms for personal use, it does not permit the retail sale of psilocybin. This has given rise to a grey market for mushrooms in the state.
The grey market refers to the unregulated and informal sale and distribution of mushrooms. Entrepreneurs and unlicensed "guides" have emerged, offering services such as guided psychedelic experiences, microdosing advice, and supplies. These guides operate in a legal grey area by “sharing” mushrooms with clients rather than selling them and charging for related services. While the state law currently allows these activities, they may soon face stricter regulations and enforcement as the state prepares to launch a highly regulated mushroom industry.
The emergence of the grey market has been facilitated by the perception of reduced legal risk, even though selling mushrooms remains a felony. The lack of specific quantity limits in the law and the focus on regulating the licensed market have further contributed to the growth of the grey market. However, some practitioners fear that the impending regulations will push them underground again.
The state government is set to start accepting licensing applications for "healing centers" staffed by “facilitators” who can provide psilocybin and supervise its use. These facilitators will need training in screening, informed consent, and post-session monitoring. The regulated healing centers will likely offer sliding-scale pay options and discounts to increase affordability for patients.
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Mushrooms remain illegal under federal law
While Denver, Colorado, has decriminalized the use of psychedelic mushrooms, or psilocybin, these mushrooms remain illegal under federal law. Psilocybin is a Schedule I drug under the Controlled Substances Act, making it illegal at the federal level.
In 2023, Denver made headlines as the first city to decriminalize psilocybin mushrooms, allowing adults 21 and older to grow, use, and share psychedelic mushrooms for personal use. The city's previous decriminalization ordinance, which made law enforcement involving psilocybin mushrooms the lowest priority, was repealed in 2025 when Colorado decriminalized psilocybin statewide.
Despite the changes in local and state laws, the sale of psilocybin mushrooms remains a felony in Colorado, and possession or use is still a federal crime. The state plans to launch a highly regulated mushroom industry, with licensing applications for "healing centers" staffed by "facilitators" who can provide psilocybin and supervise its use.
The decriminalization of psilocybin in Colorado has resulted in a gray market, with entrepreneurs offering guided psychedelic experiences, "microdosing" advice, and supplies in mostly legal arrangements. However, the state is taking steps to discourage informal operators and unlicensed guides, who may be operating ahead of the curve in terms of regulation.
While the legality of psilocybin mushrooms varies from state to state, it is important to note that they remain illegal under federal law, and individuals should be aware of the potential legal consequences if they choose to use or possess them.
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The future of regulated mushroom industry
The future of the regulated mushroom industry in Denver, Colorado, is currently in flux, with the state preparing to launch a highly regulated psychedelics industry. While the use, possession, and cultivation of psychedelic mushrooms for personal use have been decriminalized, the sale of these mushrooms remains illegal.
In 2023, Denver made headlines as the first city to decriminalize psilocybin mushrooms, but this local law was repealed in 2025 when Colorado voters approved Proposition 122, decriminalizing psilocybin statewide. This change in legislation has created a legal therapeutic industry, with the first licenses for providing psychedelic mushrooms being issued. However, the sale of psilocybin mushrooms remains a drug felony in Colorado, and penalties for selling these substances are harsh.
The state government is now preparing to accept licensing applications for "healing centers" where "facilitators" will provide psilocybin and supervise its use. These facilitators will require training in screening, informed consent, and post-session monitoring. To increase affordability, healing centers are considering offering sliding-scale payment options and discounts for specific groups.
The regulated market for psychedelic mushrooms in Colorado is expected to be expensive, similar to Oregon's program. While the mushrooms themselves are not costly, the facilitator's time and support services are priced high, and there are additional state fees. Sessions in Oregon typically range from $1,000 to $3,000 and are not covered by insurance.
In the lead-up to the rollout of the regulated industry, a grey market has emerged in Denver, with entrepreneurs offering guided psychedelic experiences, "microdosing" advice, and supplies. These businesses operate in a legal grey area, and the state is taking steps to bring them into compliance with the upcoming regulations.
The future of the regulated mushroom industry in Denver and Colorado is moving towards a highly structured and supervised model, with strict licensing requirements and extensive facilitator training. The focus is on creating a safe and affordable therapeutic industry while navigating the complexities of state and federal laws.
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Frequently asked questions
As of 2023, it is no longer a crime in Denver for adults 21 and older to possess, consume, and share psychedelic mushrooms. However, retail sales of magic mushrooms remain a drug felony in Colorado.
Penalties depend on the amount of drug involved. Up to 14 grams is considered a Level 3 drug felony, punishable by 2 to 4 years in prison and fines ranging between $2,000 and $500,000. Selling to a minor is a Level 1 drug felony.
Businesses selling mushrooms in Denver must follow strict regulations, including not operating within 1,000 feet of childcare centers and K-12 schools. They also cannot advertise natural medicines to minors or misappropriate Native American and Indigenous cultures.
