According to Foresight News, a senior official from the French Prudential Supervision and Resolution Authority (PSRA) revealed in an interview with DL News that they are weighing the possibility of requiring smart contracts to comply with new regulatory and security measures. This could be a potential outcome of key new initiatives to regulate the decentralized finance (DeFi) market.
Under the proposed plan, regulators would verify the compliance of smart contracts, restrict the operation of uncertified smart contracts, and isolate them from the financial network. As a result, DeFi developers may need to rewrite almost all smart contracts, which could effectively produce a similar effect to a ban. This move highlights the increasing scrutiny of the DeFi market by regulatory authorities.