Sui (SUI)

“Why the CLARITY Act is bad for certain coins”

The reason is the 20% Rule.

In simple terms,

If the issuer, foundation, or an affiliated entity
controls more than 20% of the token supply or voting rights,

“It could become difficult to be recognized as a ‘sufficiently decentralized network’.”

(Not recognized → “Then it’s a security?”)

But here the judgment criterion is control.

“Who holds how many tokens” and

“Who actually ‘steers’ the network” become the standards.

⸻

However, this poses a considerable risk for certain altcoins.

Why? Because many projects started this way:

Received VC investment,

The foundation held tokens,

Team tokens were locked up,

Initially the foundation handled development, operations, and marketing.

And they said:

“We plan to decentralize progressively.”

But now regulators focus on

“While the plan is clear, who is in control right now?”

⸻

If this criterion is applied without exception,

Emerging altcoins could face severe challenges.

SUI,

APT,

WLD,

SEI

Projects that had strong early foundation, VC, or team influence may continue to feel pressure from this standard.

ARB,

OP,

UNI and other DAO tokens are not completely free either.

Having a DAO is not the end;

We need to see if voting power is truly distributed,

How much influence the foundation and core participants have,

And whether governance is skewed toward a few.

While it’s noted that BTC and ETH are relatively advantageous.

There is no single issuer,

It’s hard to say a single foundation holds supply or makes decisions.

⸻

Therefore, the criteria for investing in altcoins may change going forward.

Previously we looked at

technology,

narrative,

tokenomics,

VC line‑up.

If the bill actually passes,

can the token be explained as sufficiently decentralized according to regulatory standards?

Projects that cannot answer this question may face

listing,

liquidity,

institutional capital,

and a disadvantageous entry into the US market.

⸻

The next cycle will be about

“who has better technology