Shares of psychedelic drug companies soared Monday after President Trump signed an executive order to deregulate access to substances like psilocybin and MDMA for mental health treatment. Compass Pathways jumped 43 percent to its highest level in two years, while AtaiBeckley climbed 24 percent. The AdvisorShares Psychedelics ETF rose 10 percent in afternoon trading.

The executive order directs the attorney-general to revisit restrictions on psychedelic drugs that have completed late-stage trials for treating serious mental health disorders. It also calls for accelerated FDA review and increased access to clinical trials through the Department of Veterans Affairs. The move aligns with Trump's broader embrace of alternative medicines, following recent actions on peptides and cannabis.

Analysts at Oppenheimer called the order a "structural inflection" for the US psychedelics sector, noting it provides political support that could accelerate commercialization. While several municipalities have decriminalized psychedelics and Washington and Oregon have legalized magic mushrooms, major pharmaceutical investment remains limited. Most research is conducted by specialized start-ups like Compass and AtaiBeckley, which are exploring treatments for depression and post-traumatic stress disorder.