The GENIUS Act Explained: Everything Investors Need to Know About America's First Major Cryptocurrency Legislation

7RCC and BTCK were featured this week in Ignites, the Financial Times' institutional fund industry publication, as part of a broader piece examining how asset managers are reframing environmental market exposure as economic risk management rather than values-based investing.

The article, "The Quiet Pivot: Fund Firms Reframe ESG as Risk Management," explores how domestic fund managers are moving away from broad ESG labels in favor of specific, measurable market variables targeted at institutional allocators. The piece cites BTCK's NYSE Arca debut as a blueprint for this channel shift.

7RCC Co-Founder and CEO Rali Perduhova spoke directly to the firm's positioning:

"We are staying away from the ESG label. Whether you believe in ESG or not, the carbon markets exist, the regulations exist, and they impact cash flows, valuations, and entire industries. This is an institutional-grade investment strategy."

That framing is exactly what BTCK was built around. Carbon credit futures tied to the EU Emissions Trading System, California Cap-and-Trade, and RGGI are compliance-driven markets with real regulatory underpinnings -- not a values overlay. Pairing them with bitcoin brings together two asset classes with distinct, largely independent return drivers in a single regulated vehicle.

The full article is available to Ignites subscribers at ignites.com.

Important Risk Information

Investing involves risk, including possible loss of principal. Bitcoin is highly volatile and subject to market, regulatory, custody, and technology risks. Carbon credit futures are subject to futures market risks, including liquidity risk, roll risk, and regulatory and political developments affecting emissions-allowance markets. The Fund is a commodity pool regulated by the CFTC and is not registered under the Investment Company Act of 1940. As a commodity pool, the Fund issues a Schedule K-1 for tax reporting rather than a Form 1099; consult a tax advisor. Past performance does not guarantee future results. An investor may lose all or substantially all of an investment. The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.

This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit teucrium.com/btck.

Distributed by PINE Distributors LLC, Member FINRA/SIPC. Sponsored by Teucrium Trading, LLC. PINE Distributors LLC is not affiliated with Teucrium Trading, 7RCC, or any affiliates.

Not an offer or solicitation to buy or sell any securities outside the United States.

MIAMI--(BUSINESS WIRE)--Jun. 4, 2026-- 7RCC Global, a financial technology and research firm focused on bridging traditional capital markets, digital assets, and regulated market infrastructure, today marked the trading debut of the 7RCC Spot Bitcoin and Carbon Credit Futures ETF (NYSE Arca: BTCK), an exchange-traded product designed to provide investors with exposure to bitcoin alongside regulated carbon credit futures through a single investment vehicle. Built around the 7RCC Kaiko Bitcoin Carbon Credit Index, BTCK begins trading on NYSE Arca today.

7RCC paired together bitcoin and regulated carbon credit futures in BTCK’s underlying strategy deliberately. The markets for both underlying assets are driven by largely independent forces, adoption and monetary dynamics on one side, emissions policy and compliance demand on the other, bringing two distinct return drivers into a single allocation.

“We started 7RCC because we believed digital assets would become a permanent part of the global financial system and that investors would want them in familiar, regulated structures built for the long term," said Rali Perduhova, Co-Founder and CEO of 7RCC Global. "BTCK pairs bitcoin with regulated carbon markets, bringing together two asset classes driven by distinct market forces. It's designed to give investors a single, transparent way to access exposures that have historically been difficult to combine within one investment vehicle."

The Fund seeks to reflect the daily changes of the price of bitcoin and the value of carbon credit futures, as represented by the 7RCC Kaiko Bitcoin Carbon Credit Index, less the expenses of the Fund. Under normal market conditions, the Fund allocates approximately 80% of its assets to bitcoin and approximately 20% to carbon credit futures linked to major regulated emissions-allowance markets, including the European Union Emissions Trading System (EU ETS), California Cap-and-Trade (CCA), and the Regional Greenhouse Gas Initiative (RGGI). BTCK differs from a single-asset spot bitcoin ETF by adding a regulated carbon futures allocation.

BTCK trades on NYSE Arca and can be accessed through brokerage accounts that support listed ETFs, allowing investors to gain exposure without maintaining a separate digital asset wallet or exchange account.

7RCC's broader work focuses on expanding access to emerging asset classes through regulated investment vehicles and on developing market infrastructure for regulated investment products. "BTCK is an important milestone for 7RCC, reflecting years of research and our belief that regulated, transparent structures are the right way to bring new asset classes to investors," Perduhova added.

BTCK is a series of Teucrium Commodity Trust, sponsored by Teucrium Trading, LLC, with PINE Distributors LLC serving as Marketing Agent. The Fund tracks the 7RCC Kaiko Bitcoin Carbon Credit Index and trades on NYSE Arca under the ticker BTCK. The Index is provided by Kaiko (benchmark administrator) and calculated by Solactive AG; the Fund's bitcoin is held by Gemini Trust Company, with U.S. Bank serving as cash custodian and administrator.

For more information about BTCK, including the prospectus and risk disclosures, please visit teucrium.com/btck.

About 7RCC Global

7RCC Global is a financial technology and research firm focused on bridging traditional capital markets, digital assets, and regulated market infrastructure. The firm develops index methodologies and technology designed to expand access to emerging asset classes through regulated investment vehicles. 7RCC developed the methodology behind the 7RCC Kaiko Bitcoin Carbon Credit Index. Beyond its index work, the firm is building next-generation infrastructure for digital ownership and transfer within regulated investment products — part of a broader effort to modernize how new asset classes reach investors. 7RCC is not a broker-dealer, an investment adviser, or the Fund's sponsor or distributor.

About Teucrium Trading, LLC

Teucrium is a provider of exchange-traded funds (ETFs) that focuses on offering exposure to alternative asset classes. The company also provides White-Label ETF services, allowing partners to create customized ETF products. For more information, visit www.Teucrium.com.

Important Risk Information

Investing involves risk, including possible loss of principal. Bitcoin is highly volatile and subject to market, regulatory, custody, and technology risks. Carbon credit futures are subject to futures market risks, including liquidity risk, roll risk (which can be negative), and regulatory and political developments affecting emissions-allowance markets. The Fund is a commodity pool regulated by the CFTC and is not registered under the Investment Company Act of 1940 and is not subject to regulation thereunder. As a commodity pool, the Fund issues a Schedule K-1 for tax reporting rather than a Form 1099; consult a tax advisor. Past performance does not guarantee future results. An investor may lose all or substantially all of an investment.

Bitcoin and bitcoin futures are a relatively new asset class. They are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The value of an investment in the Fund could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment. Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments.

Because the Fund invests primarily in spot bitcoin, with a portion allocated to carbon credit futures contracts, an investment in the Fund will subject the investor to the risks of bitcoin and the carbon credit markets. This could result in substantial fluctuations in the price of the Fund’s shares.

Commodities and futures generally are volatile, and instruments whose underlying investments include commodities and futures are not suitable for all investors. Futures investing is highly speculative and involves a high degree of risk.

7RCC Kaiko Bitcoin Carbon Credit Index: The 7RCC Kaiko Bitcoin Carbon Credit Index is a financial benchmark designed to track the performance of a portfolio that combines digital assets with environmental sustainability. It serves as the underlying index for the 7RCC Spot Bitcoin and Carbon Credit Futures ETF. It is not possible to invest directly in an index.

This material must be preceded or accompanied by a prospectus. Please read the prospectus carefully before investing. To obtain a current prospectus visit www.teucrium.com/btck.

Distributed by PINE Distributors LLC, Member FINRA / SIPC. Sponsored by Teucrium Trading, LLC. PINE Distributors LLC is not affiliated with Teucrium Trading, 7RCC, or any affiliates.

Not an offer or solicitation to buy or sell any securities outside the United States. 7rccglobal.com · teucrium.com/btck

View source version on businesswire.com: https://www.businesswire.com/news/home/20260604519452/en/

View on Financial Times: https://markets.ft.com/data/announce/detail?dockey=600-202606040930BIZWIRE_USPRX____20260604_BW519452-1

Media Contact

Tucker Slosburg
Lyceus Group
7rccpr@lyceusgroup.com
(206) 635-4196

Source: 7RCC Global

California continues to lead the U.S. in climate regulation, and its latest wave of legislation—SB253, SB261, and AB1305—may redefine how companies account for and manage their emissions. These new climate disclosure laws will not only transform corporate reporting but are poised to deeply impact the carbon credit landscape, both within California and beyond.

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What Just Happened: A Quick Overview

As reported in This Week in Energy, a federal judge has upheld California’s sweeping climate disclosure laws despite legal challenges. This ruling clears the way for enforcement and solidifies California’s role as the country’s most ambitious state-level climate regulator. It also reaffirms the state’s authority to demand greenhouse gas (GHG) and climate risk disclosures from companies doing business in California—whether they’re headquartered there or not.

What Are Scope 1 and Scope 2 Emissions?

Before diving into the legal implications, it's important to understand the basic terminology companies are now required to report:

• Scope 1 emissions: These are direct GHG emissions from sources that a company owns or controls, such as fuel burned in company-owned vehicles or boilers.
• Scope 2 emissions: These are indirect GHG emissions from the generation of purchased electricity, steam, heat, or cooling. They occur at the power plant but are attributed to the company using the energy.

Together, these scopes capture a company’s operational carbon footprint and are the initial focus of California’s mandatory disclosures under SB253.

Who Must Comply — and Why Revenue Matters

California’s new laws are tightly linked to company revenue thresholds, targeting the largest businesses operating in the state:

• SB253 applies to companies with over $1 billion in annual global revenue.
• SB261 covers those with over $500 million in annual revenue.
• AB1305, which governs the marketing of carbon offsets, applies broadly—regardless of revenue—to any entity making climate claims in California.

This means the laws apply not only to oil companies and manufacturers, but also to tech giants, retailers, banks, logistics providers, and multinationals—even if their headquarters are elsewhere.

Because these firms will now be required to report Scope 3 emissions (value-chain emissions) starting in 2027, the ripple effect will extend to smaller suppliers and contractors, especially those serving large enterprises.

What Are California Carbon Credits?

California’s carbon credit system is a cornerstone of its Cap-and-Trade Program, designed to reduce greenhouse gas (GHG) emissions through market-based incentives.

1. Allowances (Compliance Credits)

• Issued by the California Air Resources Board (CARB)
• One allowance equals permission to emit one metric ton of CO₂e
• Allocated or auctioned to companies—surplus allowances can be traded
• Primarily used by large emitters to meet emissions caps

2. Offsets

• Represent verified GHG reductions outside of regulated sources (e.g., forestry, methane capture)
• CARB-approved, with strict criteria around additionality and permanence
• Can contribute up to 4% of a regulated entity’s compliance requirement

There's also a voluntary market, where companies purchase credits beyond legal obligations, often to meet sustainability goals.

How the New Laws Will Affect Carbon Credits

The confirmation that these laws stand opens the door for meaningful shifts in how carbon credits function in California’s landscape.

1. Demand Surge for Quality Credits

With Scope 1, 2, and 3 emissions disclosure now unavoidable, corporations will lean on high-integrity offsets to complement their reduction strategies.

2. Greenwashing Risks Heightened

Under AB1305, companies must provide detailed disclosures around offset claims—focusing on methodology, verification, location, and retirement. This raises stakes for low-quality providers.

3. Offset Reliance May Shift

Mandatory climate-risk reporting (per SB261) nudges firms toward internal reductions and responsible offset usage rather than defaulting to credits for reputation management.

4. Expanding Market Participation

Even non-compliance-bound firms may voluntarily engage in credit markets to bolster their climate strategies—broadening the buyer base.

5. California Setting National Standards

With federal rules lagging, these laws could become prototypes for other states—or even federal frameworks—enhancing the credibility and reach of California carbon credits.

Timeline to Watch

Milestone                                                                     Deadline

Legal hurdle cleared                                               2025 (federal ruling)

Final CARB regulations released                      By July 1, 2025

Scope 1 & 2 emissions reporting begins     2026 (based on FY 2025 data)

Scope 3 emissions reporting begins            2027 (CARB to set schedule)

Climate-risk reporting begins                           By January 1, 2026 (biennially thereafter)

Despite some legal pushback, California is asserting its position: these laws are here to stay. natlawreview.com+11wsj.com+11thisweekinenergy.substack.com+11

Final Thoughts: Integrity Is the New Currency

These landmark rulings underscore that climate disclosure is mandatory—and the days of vague, unverifiable carbon claims are numbered.

For companies:

• Begin upgrading emissions tracking systems now
• Evaluate offset strategy through the lens of transparency and durability

For offset providers:

• Demand for high-quality, verifiable projects will rise—be ready to meet the bar

For investors and policymakers:

• California's path is increasingly becoming a benchmark for climate accountability nationwide

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