/quotes/zigman/28167004/delayed TRTC -0.63% are all employing a “no-touch” approach to their cannabis business models. By creating business models that indirectly deal with marijuana plants, these companies reduce or eliminate the risk of falling foul of changing federal laws and restrictions. According to ArcView Market Research, regulated marijuana sales in North America reached $6.9 billion in 2016, an increase of 30 percent compared to 2015. Sales are expected to continue their pace and reach $21.6 billion by the year 2021, Marijuana Stocks representing CAGR of 26 percent. New Frontier Data projects growth in the medical cannabis market at 12 percent CAGR through 2025, growing from $4.7 billion in 2016 to an estimated $13.3 billion in 2025. During the same period, adult use sales will experience growth of 21 percent CAGR, rising from $1.9 billion to $10.9 billion. Despite the easing of prohibition and the rosy prospects for the industry, cannabis remains a Schedule 1 substance under the Controlled Substances Act, a place it occupies alongside heroin, lysergic acid diethylamide (LSD), and ecstasy. The Drug Enforcement Administration (DEA) defines Schedule 1 drugs as those with a high potential for abuse and the potential to create severe psychological and/or physical dependence. In light of the industry uncertainty under the Trump Administration – which has indicated that states with recreational marijuana will see “greater enforcement” of federal laws – marijuana businesses like Singlepoint, Inc. /quotes/zigman/18904875/delayed SING -6.25% (SING Profile) , which pursues a no-touch strategy when it comes to dealing with marijuana plants, are in a stronger position to combat legal challenges. After all, selling a spade is not the same thing as digging for coal.
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