In the Arena | October 1, 2026
“3 observations and a chart” on the latest in the digital assets sector
SEC and CFTC advance crypto despite Senate setback
The US Senate failed to advance the CLARITY Act, but the SEC and CFTC responded by moving ahead with meaningful regulatory action using existing authority. The SEC introduced a five-year Innovation Exemption allowing approved venues to trade certain tokenized securities on public blockchain infrastructure, while the CFTC simultaneously expanded its no-action framework for blockchain software developers. Together, these actions create a practical path for regulated innovation while more comprehensive legislation remains under debate. Markets responded favorably, with Bitcoin and digital assets rallying more than 10% following the announcements. We highlight that blockchain adoption is no longer waiting for Congress, as regulators begin defining how capital markets will move onchain.
Stablecoins quietly become mainstream financial infrastructure
SoFi has begun settling Mastercard debit and credit card transactions using its SoFiUSD stablecoin, making it the first US bank to deploy stablecoin settlement at scale. Consumers will notice virtually no difference when they use their cards—authorization, fraud protection, rewards, and the overall customer experience remain unchanged. Behind the scenes, however, the settlement layer moves onto faster, more efficient, and interoperable blockchain rails. The program is expected to process more than $25 billion in annualized payment volume. Visa is seeing the same trend at scale, reporting that stablecoin settlement has surpassed a $20 billion annualized run rate, more than 15 times higher than a year ago, across more than 160 stablecoin-linked card programs worldwide. We highlight that the most important blockchain adoption may be the kind consumers never notice, as stablecoins quietly replace decades-old financial infrastructure.
NASDAQ deepens commitment to tokenized equities
Nasdaq announced a $100 million strategic investment in Payward, the parent company of Kraken, one of the world’s leading digital asset trading platforms, deepening the partnership the two firms first announced earlier this year to bring tokenized equities to market. The companies are jointly developing the Nasdaq Equity Token (NET) framework, designed to enable investors to own blockchain-based versions of public equities that preserve traditional shareholder rights while allowing for faster settlement and always-on trading. Nasdaq will also provide market surveillance technology across Payward's crypto, tokenized equity, and derivatives platforms, underscoring its commitment to integrating blockchain technology into regulated capital markets. We highlight that tokenization is rapidly moving beyond experimentation as established exchanges invest in and help build the blockchain-based capital markets of the future.
Chart of the Month – Tokenized equity trading on the rise…Greyscale expects SEC “Innovation Exemption” to support further growth
Source:https://www.grayscale.com/the-stack/sec-s-innovation-exemption-brings-tokenized-stocks-to-life
Arena Digital Capital Partners is a liquid evergreen fund open to monthly subscriptions. We are always happy to discuss further with you or investors you think may have an interest in the sector. Please reach out to Bill Cline at williamc@arenadigital.capital.
Sincerely,
The Arena Digital Capital Management Team
Michael Schwartz, Michael Prober & William Cline
Arena Digital Capital Management was founded in January 2022 by three experienced traditional finance hedge fund professionals who have been deploying personal capital in the digital asset ecosystem since 2018. The team has managed billions of dollars of capital for high net worth individuals, family offices, and institutions ranging from pension plans and endowments to sovereign wealth funds. We have worked closely with institutional consultants, RIAs, and other advisors in serving their clients.
In May 2022 we launched Arena Digital Capital Partners, with the goal of providing a multi-strategy investment vehicle to access the digital asset ecosystem. Our mandate is to offer broad exposure across the growing digital asset and blockchain sector with an appropriate level of diversification, professional oversight, and manager selection. Our collection of skill sets and our history in the business allows us to understand, assess, and engage with the practitioners of this nascent asset class with a level of diligence required to be responsible stewards of capital. We are happy to periodically share our observations with you.
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