Psychedelic Stocks

Massachusetts Lawmakers Forward Bill Creating Psychedelics Working Group to Governor’s Desk

Legislators in the state of Massachusetts have forwarded a measure focused on military veterans to the governor’s desk for approval. The measure includes provisions to establish a psychedelic working group to conduct research and give recommendations on the potential therapeutic benefits of psychedelics like MDMA and psilocybin.

In particular, the group would explore whether psychedelic therapy was linked to improved outcomes among veterans diagnosed with a range of mental-health conditions while also looking for alternative mental-health treatments for veterans. The measure, titled the HERO Act, was initially introduced by Governor Maura Healey in November 2023.

It should be noted that the language in the proposal wouldn’t immediately establish a framework to legally access psychedelics. The working group would also be required to file a report with its recommendations and findings along with a pair of joint legislative committees and the clerks of the senate and house by Jan. 1, 2025, at the latest.

Prior to this, the house and senate had approved different versions of the measure and psychedelics provisions. The house version of this proposal had included an amendment that would have added a section to establish a pilot program looking into medical marijuana as an opioid alternative for veterans.

However, bicameral negotiators during a committee meeting agreed on a final version that has now been approved in both chambers. Final passage of this bill comes after a joint legislative committee advised legislators not to approve a broader resolution to legalize psychedelics.

William F. Galvin, secretary of the Commonwealth, verified in July that activists had gathered enough valid signatures, 13,073 to be precise, for this resolution to be brought before voters in Massachusetts. Legislators were required to consider the psychedelics proposal, which was spearheaded by Massachusetts for Mental Health Options. This was after state-certified advocates submitted valid signatures during a petitioning round in 2023.

Earlier in May this year, the Special Joint Committee on Ballot Initiatives published a majority report which formally recommended against passing the resolution as drafted. Before giving this recommendation, the panel had held a hearing to acquire expert feedback on the resolution.

Thus far, eight cities in the state have also approved policies to deprioritize enforcement of laws against psychedelics locally. They include Amherst, Easthampton, Medford, Provincetown, Northampton, Cambridge, Somerville and Salem.

Meanwhile, a separate committee advanced a measure at the beginning of this year that would legalize psychedelic therapy in the Commonwealth. If approved, the measure would also establish a framework to license facilitators who would oversee the therapeutic, spiritual and medical applications of psilocybin.

As more states take steps to reform their psychedelics laws, start-ups such as Seelos Therapeutics Inc. (NASDAQ: SEEL) could see this as a bullish sign for the psychedelic-based treatments they are working to develop and get approved by the FDA.

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