Colorado Issues Initial Psilocybin Business Licenses

LOS ANGELES- In January 2025, Colorado began accepting applications for psilocybin-related business licenses, following the approval of regulations by the Department of Regulatory Agencies and the Department of Revenue. These licenses encompass roles such as facilitators, healing centers, cultivation facilities, product manufacturers, and testing laboratories. The first licensed healing centers are anticipated to commence operations by late spring or early summer 2025.

The state’s regulatory framework mandates that psilocybin services be conducted within licensed facilities under the supervision of trained facilitators. Unlike cannabis dispensaries, the retail sale of psilocybin for off-site consumption remains prohibited. All psilocybin products must be consumed on-site during guided sessions to ensure participant safety and compliance with state laws.

Local municipalities retain the authority to regulate the operation of psilocybin businesses within their jurisdictions. For instance, Colorado Springs has implemented zoning restrictions that limit the locations of healing centers, reflecting ongoing debates between conservative leaders and veterans advocating for access to psychedelic therapies for conditions such as PTSD.

As Colorado progresses with the rollout of its psilocybin therapy program, it joins Oregon in pioneering state-regulated psychedelic-assisted treatments, aiming to address mental health challenges through alternative therapeutic modalities.