Trump Pivots on Psychedelics, Signs Executive Order to Fast-Track Mental Health Research
President Donald Trump signed an executive order in April aimed at accelerating research into psychedelic drugs for mental illness, marking a notable shift from his first-term stance on controlled substances. The move triggered a rally in shares of drug developers such as Compass Pathways, though the science behind these treatments remains deeply debated.
Executive Order and Industry Response
The executive order, signed on April 18, 2026 in the Oval Office at the White House in Washington, D.C., directs resources toward studying psychedelic compounds that "show potential in clinical studies to address serious mental illnesses for patients whose conditions persist after completing standard therapy," according to the White House. This represents a reversal from Trump's first term, when his administration took a harder line on cannabis and other controlled substances.
Concurrently, the Trump administration issued priority review vouchers to three companies developing psychedelic or MDMA-like therapies: Compass Pathways, Usona Institute, and Transcend Therapeutics. These vouchers are designed to accelerate parts of the Food and Drug Administration review process. Wall Street analysts argued the order could legitimize an industry long viewed as fringe, as investors quickly piled into the sector.
Patient Experience and Clinical Context
Marie Phelan, who enlisted in the U.S. Army Reserve in 1999 and was deployed to Iraq in 2003, said she had never heard of MDMA before spotting a flyer seeking veterans suffering from post-traumatic stress disorder. She now says the psychoactive drug — more commonly known as ecstasy or molly — has changed the trajectory of her life.
"My experience of MDMA was that it just cracked my heart wide open," Phelan said. "I was carrying this big heavy rucksack and I just put it down on the beach and I started unpacking it one little teeny tiny thing at a time and setting each little thing out on the waves."
Phelan is among a small group of Americans who have undergone psychedelic-assisted therapy through clinical trials studying new approaches to mental health treatment. Access to these therapies is now closer than ever to being expanded more broadly, bringing new options for patients and opportunities for companies — but also new scrutiny about safety and effectiveness.
Scientific Focus and Historical Research
Historically, research into psychedelics has concentrated on specific conditions. Psilocybin — the active compound in psychedelic mushrooms — has been studied for treating depression, MDMA-assisted therapy for post-traumatic stress disorder, and lysergic acid diethylamide (LSD) for anxiety. Other compounds under investigation include ibogaine, a psychoactive substance derived from certain plants.
Market Context
- USD/RUB: 71.02 (change: -0.35)
- EUR/RUB: 82.64 (change: -1.05)
- Bitcoin: $73,546 (24-hour change: -0.4%)
- Oil: approximately $72 per barrel