Both the cannabis industry and the psychedelics industry are dependent on deregulation. However, unlike cannabis, there are many more stories of how psychedelics have made life-changing improvements in people's lives and there's growing research that psychedelics could bring promising treatments for mental illnesses.

And outside of mental illnesses, there are many more possible applications for psychedelics than compared to cannabis.

The benefits of psychedelics over traditional medicines include:

Because governments are more focused on legalizing cannabis and less focused on legalizing psychedelics, many investors are hesitant to invest in this sector. But, that hasn't deterred legendary investors like Kevin O'Leary, who has invested in $MNMD and $CMPS, or Peter Thiel, who invested in $ATAI.

The margin of safety for speculative investors looking to get into this space is high after the market crash. It's important to check their balance sheets as clinical trials are expensive and they'll need to hold out longer for legislation to pick up their pace.

As for legislation, California is leading the way in legalizing psychedelics. Hopefully, more states will follow suit.