Denver Decriminalizes Magic Mushrooms: Law And Future

In May 2019, Denver became the first city in the United States to decriminalize psilocybin mushrooms, which are considered a Schedule I drug and are federally illegal. The law prohibited the city from prosecuting adults over 21 for their use or possession. In 2022, Colorado followed suit with a statewide decriminalization measure, which also legalized the personal use, growing, and sharing of psilocybin and other psychedelic compounds. While this has led to a 'gray market' of unregulated mushroom-related businesses, the state is now working to establish a highly regulated psychedelics industry with licensed healing centers. As of March 2025, Colorado has begun issuing licenses for medical-assisted use, marking a shift towards state-regulated psychedelic mushrooms.

Denver was the first city to decriminalize mushrooms

In May 2019, Denver, Colorado, became the first city in the United States to decriminalize psilocybin mushrooms after a ballot initiative narrowly won with 50.6% of the vote. The initiative did not legalize mushrooms but prohibited Denver from spending any resources to prosecute people for their use or possession. The law applied to adults over the age of 21, and psilocybin remained illegal in Colorado until the passing of Proposition 122 in November 2022.

The move by Denver made national headlines and was the first step in a wave of decriminalization and legalization of psilocybin mushrooms across the United States. In June 2019, thirty individuals testified to the city council in Oakland, California, about their prior experiences with psilocybin. Following the testimonies, the city council unanimously voted to decriminalize the drug, along with peyote. In January 2020, Santa Cruz, California, voted unanimously to decriminalize the adult possession and cultivation of psilocybin. Commercial sale of psilocybin is still illegal.

In September 2020, the City Council of Ann Arbor, Michigan, voted in favor of a resolution declaring the investigation or arrest of anyone for planting, cultivating, purchasing, transporting, distributing, engaging in practices with, or possessing entheogenic plants a low priority for law enforcement. In October 2023, the City Council in Portland, Maine, voted to deprioritize the local enforcement of laws against psychedelic plants and fungi. In August 2024, the City Council in Olympia, Washington, decriminalized plant-based hallucinogens, including psilocybin mushrooms. On January 28, 2025, the City Council in Tacoma, Washington, decriminalized natural psychedelics containing tryptamines, phenethylamines, and indolamines.

In November 2022, Colorado voters approved Proposition 122, decriminalizing psilocybin statewide and creating a legal therapeutic industry. This essentially made the Denver psilocybin initiative obsolete, and in March 2025, the Denver City Council repealed the city's landmark law and fully embraced the state's regulatory framework. The state has appointed a Natural Medicine Advisory Board to help set policies for the state's new psilocybin industry, including rules and regulations for where and how the state's new psilocybin cultivators and therapy services can operate in Denver.

The Denver City Council repealed the decriminalization law

In 2019, Denver became the first city in the United States to decriminalize psilocybin mushrooms. However, this landmark law was short-lived, as the Denver City Council unanimously repealed it in 2025. The repeal came after Colorado voters approved an even more significant change: the statewide decriminalization of psilocybin and the creation of a legal therapeutic industry through Proposition 122.

The Denver City Council's decision to repeal the decriminalization law was not without controversy. Some, like Kyle Obenberger, criticized the move as a "cash grab" that would favor investor-backed companies with the financial means to obtain licenses. However, councilmember Chris Hinds supported the repeal, arguing that it was a natural evolution of the work Denver had begun years ago. He pointed to the progress made by other states in regulating natural medicine and argued that Denver should embrace a stronger, clearer system that builds on its initial efforts.

With the repeal of the decriminalization law, Denver has fully embraced the state's regulatory framework for psilocybin. This includes creating rules and regulations for the operation of psilocybin businesses in the city. The state has appointed a Natural Medicine Advisory Board to help develop these policies, ensuring that access to psilocybin is "affordable, equitable, ethical, and culturally responsible."

The regulatory framework for psilocybin in Colorado is still a work in progress. The state has only recently started drawing up rules and regulations for the producers who will be allowed to grow and sell mushrooms to healing centers. While the launch of a strictly regulated mushroom industry in the state is expected to push some early "gray market" practitioners out of business, it also aims to provide a safer and more accessible framework for those seeking the therapeutic benefits of psilocybin.

Colorado voters approved Prop 122, decriminalizing mushrooms statewide

In November 2022, Colorado voters approved Proposition 122, decriminalizing psilocybin mushrooms statewide. This came three years after Denver became the first city in the United States to decriminalize psilocybin mushrooms in May 2019.

The proposition, known as Colorado's Natural Medicine Health Act, passed by a narrow margin. It allows for the use of mushrooms at state-regulated "healing centers" under the supervision of trained facilitators. The act also legalizes personal private use, growing, and sharing of psilocybin and psilocin, as well as three additional psychedelic compounds—mescaline, ibogaine, and dimethyltryptamine (DMT)—for adults over the age of 21. Retail sales of these substances are not permitted.

The state has appointed a Natural Medicine Advisory Board to help set policies for the new industry. The board's 15 members, including psychedelic researchers, health experts, and law enforcement officials, will advise state authorities on topics such as training and evaluating facilitators. They will also consider factors such as ensuring "affordable, equitable, ethical, and culturally responsible" access to the drugs.

The decriminalization of psilocybin mushrooms in Colorado is a significant step, as the drug remains a Schedule I controlled substance at the federal level, considered to have "no accepted medical use and a high potential for abuse." However, decriminalization advocates have cited research suggesting that psilocybin is non-addictive and causes a low number of emergency visits compared to other illegal drugs. Additionally, research has indicated the potential beneficial use of psilocybin in treating treatment-resistant depression and nicotine dependence.

The new law has created a "'gray market' in Colorado, with entrepreneurs offering guided psychedelic experiences and "microdosing" advice. However, the state is preparing for the launch of a highly regulated psychedelics industry, with the first licenses for medical-assisted use being issued in March 2025.

The state plans to launch a regulated mushroom industry

In 2019, Denver became the first city in the United States to decriminalize psilocybin mushrooms. However, in 2025, the Denver City Council repealed this law as voters across Colorado approved an even bigger change: decriminalizing psilocybin statewide and creating a legal therapeutic industry through Proposition 122.

Colorado's Natural Medicine Health Act allows for the use of mushrooms at state-regulated "healing centers" under the supervision of trained facilitators. It also legalizes personal private use, growing, and sharing of psilocybin and psilocin, as well as three additional psychedelic compounds—mescaline, ibogaine, and dimethyltryptamine (DMT)—by adults over the age of 21. Retail sales are not permitted.

The board's initial work was expected to be completed by the spring or summer of 2024, with the state beginning to accept licensing applications for "healing centers" and other related businesses by December 31, 2024. The full rollout of the program is scheduled to take about two years.

While the regulated industry is still being established, a "'gray market' has emerged in Colorado, with entrepreneurs offering guided psychedelic experiences, "microdosing" advice, and supplies in mostly legal arrangements. However, these businesses may need to adapt to the upcoming regulations, with big changes expected to start as soon as July 1, 2025.

The future of decriminalization in Colorado

In 2019, Denver became the first city in the United States to decriminalize psilocybin mushrooms. However, in 2025, the Denver City Council repealed this law as voters across Colorado approved an even bigger change: decriminalizing psilocybin statewide and creating a legal therapeutic industry through Proposition 122.

Colorado's Natural Medicine Health Act allows for the use of mushrooms at state-regulated "healing centers" under the supervision of trained facilitators. It also legalizes personal private use, growing, and sharing of psilocybin and psilocin, as well as three additional psychedelic compounds—mescaline, ibogaine, and dimethyltryptamine (DMT)—by adults over the age of 21. Retail sales are not permitted.

The state has appointed a Natural Medicine Advisory Board to help set policies and make recommendations on topics like training and evaluating facilitators. The board will also consider factors such as ensuring "affordable, equitable, ethical, and culturally responsible" access to the drugs.

While the decriminalization of psilocybin in Colorado is a step forward for those advocating for the therapeutic use of psychedelics, it is important to note that the compound remains a Schedule I drug at the federal level, and the sale, use, and possession of psilocybin are still illegal under federal law.

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