Cannabis and psychedelics industries face challenges as summer ends

As summer concludes, the cannabis and psychedelics industries are navigating significant challenges. The cannabis sector has been impacted by ongoing regulatory hurdles, particularly regarding the SAFE Banking Act, which failed to pass despite high expectations. In October 2022, President Biden directed a review of cannabis scheduling, which could lead to a more favorable regulatory environment. However, the DEA's upcoming hearing in December may delay any decision until after the election, leaving the industry in uncertainty. Meanwhile, the psychedelics industry has encountered setbacks, particularly with MDMA research for PTSD. The FDA's decision to withhold approval and request a redo of phase 3 studies has caused disillusionment among key players, leading to downsizing at organizations like MAPS and Lykos. The resignation of Dr. Doblin from Lykos highlights the challenges faced by the sector. Despite these difficulties, there is hope for eventual success in research studies, but consolidation within the industry may occur as companies adapt to the changing landscape. Ensuring compliance with FDA requirements and maintaining robust research protocols will be essential for the future of psychedelics. As both industries look towards 2025, the outcomes of the regulatory and financial challenges they face will be crucial. The potential rescheduling of cannabis and the need for successful research in psychedelics will shape their trajectories, influencing their growth and stability in the coming years.