President Trump signed an executive order this week directing health regulators to speed reviews of psychedelic treatments and increase federal funding for research into their therapeutic potential. The action came in response to advocates for drugs like ibogaine, including influential podcaster Joe Rogan. Currently, nearly all psychedelic drugs in the United States are classified as Schedule I controlled substances—the same category as heroin or ecstasy—meaning they are considered to have no medical use and carry high risk for abuse.
Current Research and Conditions Being Studied
The strongest evidence for psychedelic treatments has emerged from trials in patients with severe depression or post-traumatic stress disorder who have not responded to existing treatments. Early-stage trials are also testing psychedelic drugs for substance abuse disorders, borderline personality disorder, obsessive-compulsive disorders, anxiety, self-harm behavior, chronic Lyme disease, and fibromyalgia.
How These Treatments Work
Psychedelic treatments function primarily by activating proteins on the surface of nerve cells that regulate the brain’s ability to reorganize, form new connections, and repair damaged circuits. Unlike traditional psychiatric drugs taken daily at home, these treatments are usually administered by medical personnel in a limited number of sessions to supplement intensive psychotherapy.
Global Approvals and U.S. Pipeline
Several countries have authorized psychedelic treatments. In Australia, MDMA is approved for PTSD, and psilocybin is authorized for treatment-resistant depression. Switzerland allows limited psilocybin psychotherapy use. In the United States and Europe, Johnson & Johnson’s esketamine nasal spray Spravato is approved for treatment-resistant depression and suicidal ideation.
The leading candidate for U.S. and European authorization is psilocybin for treatment-resistant depression. Compass Pathways’ experimental synthetic psilocybin, COMP360, reduced depressive symptoms within days in two late-stage trials, with responses lasting up to 6 months. Compass expects to complete a new drug application submission to the FDA in late 2026. Filament Health’s naturally derived psilocybin capsule, PEX010, is currently being tested in the U.S. and elsewhere for depression, PTSD, and cancer-related distress. In 2025, PEX010 became the first psilocybin drug to receive compassionate use approval in the European Union.
Safety Considerations
Risks of psychedelic-assisted therapy include acute anxiety, panic, and confusion during administration. An estimated 10% to 15% of patients experience longer-term negative effects. Psychosis or mania can develop, especially in people with bipolar disorder, schizophrenia, or a strong family history of those conditions. Physical risks vary by drug and include nausea and headache with psilocybin, fatal cardiac arrhythmias with ibogaine, and transient increases in blood pressure, heart rate, and body temperature with MDMA.
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://www.investing.com/news/stock-market-news/explainerwhat-to-know-about-psychedelic-therapies-cited-by-trump-4626978