In November 2020, Oregon voters adopted Measure 109, which legalized the therapeutic use of psilocybin in supervised, licensed facilities. While a significant step away from prohibition, the regulatory framework developed by the Oregon Health Authority still keeps such treatment, while legal, only modestly accessible.
The Oregon model does not permit recreational sales or personal cultivation. Instead, it mandates administration by a licensed facilitator within a licensed service center. This top-down structure creates significant economic hurdles. Further, the federal government’s continued classification of psilocybin as a Schedule I substance forces the program to operate outside traditional healthcare and banking rules and prevents insurance from covering treatments. More broadly, the excess regulation implies inflated prices for treatment sessions, making it a luxury good unavailable to many potential beneficiaries.
This outcome echoes many state level marijuana legalizations, where overly regulated markets create artificial scarcity and inflated costs. While partial legalization is an improvement over prohibition, true reform requires moving beyond bureaucratic control toward open access and competitive pricing. Oregon has opened the door, but it is imposing a cost that is too high for most to enter.
This article appeared on Substack on August 10, 2025. Yannick, a high school student from Quito, Ecuador, co-wrote this post.
