Ex-Gov't Foe Joins Trump, RFK Jr.'s HHS To Lead Psychedelics Policy: What It Means For Investors

Matthew Zorn, an attorney known for suing the federal government over cannabis and psychedelics policy, is now joining it.

Zorn has been appointed Deputy General Counsel at the U.S. Department of Health and Human Services (HHS) under Secretary Robert F. Kennedy Jr., with a focus on psychedelics policy, according to two sources cited by Marijuana Moment's Kyle Jaeger. The outlet also reported that Zorn is being referred to internally as the department's "psychedelics czar." The hiring was further confirmed by Politico reporter Natalie Fertig, who also cited two sources familiar with the matter.

Why This Matters

Zorn's legal work has made headlines in recent years for helping push forward federal drug policy reform. He successfully sued HHS to release its 2023 scientific review recommending the reclassification of marijuana from Schedule I to Schedule III, a pivotal moment in the current rescheduling effort.

He has also represented physicians and terminal patients in litigation against the Drug Enforcement Administration (DEA), seeking federal permission to access psilocybin therapy under Right to Try laws. While courts have thus far sided with the DEA in that case, the litigation helped elevate national awareness of the issue.

Zorn's transition from courtroom adversary to federal policymaker is significant, especially at a time when top officials in the Trump administration are signaling growing support for psychedelics research, particularly for veterans facing PTSD and traumatic brain injury.

According to Marijuana Moment, the new administration has made psychedelic-assisted therapy a clear priority:

• The FDA recently stated that exploring the therapeutic potential of psychedelics such as psilocybin and ibogaine is a "top priority."
• VA Secretary Doug Collins said during a congressional hearing that his agency is seeing "positive outcomes" from psychedelic therapy studies, and is exploring the use of vouchers for veterans to access treatment outside the VA system.
• RFK Jr. himself has previously called for legalizing psychedelics in therapeutic settings and using tax revenue to fund recovery programs.

Tuesday Watchlist: Psychedelics Stocks And ETFs

With markets closed on Monday for Memorial Day, investors will be watching Tuesday's trading session for potential movement in psychedelics-linked equities following this regulatory development.

Here are key stocks and ETFs to watch:

• Compass Pathways (NASDAQ:CMPS)
• MindMed (NASDAQ:MNMD)
• Cybin Inc. (NYSE:CYBN)
• Atai Life Sciences (NASDAQ:ATAI)
• Seelos Therapeutics (NASDAQ:SEEL)
• The AdvisorShares Psychedelics ETF (NYSE:PSIL)

What's Next?

While Zorn's new role does not automatically translate into regulatory change, it represents a clear shift: someone with a history of challenging government secrecy and opposing agency decisions is now in a position to help steer policy from within.

His appointment may bolster investor confidence in the long-term legitimacy of psychedelic-assisted therapy, particularly as the Trump administration continues to frame these treatments as potential lifelines for military veterans and trauma survivors.

Benzinga will continue monitoring regulatory updates, litigation outcomes and biotech developments in the psychedelic space.

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