Who doesn’t love a good mushroom scramble, particularly when it might have benefits beyond mere nutrition? A recent study on the effects of psilocybin — the active ingredient of some hallucinogenic mushrooms — on brain activity adds context for its promise as a therapy for depression, PTSD, addiction and other psychological conditions. By temporarily desynchronizing the default mode network , the brain’s “executive suite” responsible for adhering to habits, psilocybin scrambles the brain and in the process catalyzes a sort of biological “factory reset.” SN’s Laura Sanders brings the straight story.

👮🏻‍♂️ But is it legal?

The clinical potential of psilocybin centers on several small but solid studies that combine therapy with doses of the drug. Unlike traditional SSRIs that require daily dosages to keep symptoms at bay, two doses of psilocybin with therapy has shown the potential to keep depression symptoms away for a month, and in one study, cancer patients had less anxiety and depression for years after a single dose. The problem: it’s illegal under U.S. federal law — classified as a Schedule I substance under the Controlled Substances Act, which prohibits its use, sale and possession.

🎤 The “Means” to an end

More research is needed for advocates to make the case for medical industry support. The “factory reset” study was small (just seven participants) but conclusive. Enter Casey Means, the prominent nominee for U.S. Surgeon General and a vocal advocate for metabolic and alternative medicine, who has long championed the therapeutic potential of psychedelics. As cofounder of a health-tech startup involving continuous glucose monitors and a savvy business promoter, Means has a vested interest in setting federal policy. Her likely endorsement of psilocybin’s safety and efficacy could usher in new investment in the sector.

😵‍💫 Startups leading the trip

As states and municipalities chip away at regulatory walls, these companies are scaling the infrastructure for a psychedelic future:

• Compass Pathways (NASDAQ: CMPS) is currently conducting Phase 3 trials of their proprietary synthetic psilocybin, COMP360, aimed at treatment-resistant depression. Other trials are looking at post-traumatic stress disorder and anorexia nervosa. Compass has raised over $770 million in funding including $350 million secured in February 2026 from a public offering.
  
• AtaiBeckley (NASDAQ: ATAI) is a pharmaceutical company that is developing psychedelics, other hallucinogens, entactogens (a class of psychoactive substances such as MDMA — the key ingredient in the illicit drug Ecstasy — that induce feelings of empathy, emotional openness and connectedness) and related drugs for treatment of psychiatric conditions. Atai raised almost $800 million to date. Notably, Peter Thiel is an investor and friend of the founder.
  
• Helus Pharma (NASDAQ: HELP), formerly Cybin, is focused on next-gen psychedelics that have a shorter “trip” duration, making them more commercially viable than earlier generations of the drug. The company has secured over $570 million in funding to date, recently closing a $175 million post-IPO equity round to fund late-stage trials.

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