That is incorrect, Chris. It is perfectly legal to own in the US -- I know several cacti/succulent enthusiasts who have this in their collections. They did a LOT of checking into that very question before they did so. The illegality is using peyote -- unless you are "a member of the Native American Church and are an ethnic Native American". Also, while I can't swear to it, I believe it is also illegal to harvest peyote from the wild ... unless again you are ethnic Native American/member of the NAC.
From what I understand, some of the side effects of using peyote are far less than pleasant.