Coin Center suggests avoiding adjustment of smart contracts to avoid litigation: multisig and governance voting may be held liable

Cointelegraph reported that Peter Van Valkenburgh, the research director of the cryptocurrency advocacy organization Coin Center, emphasized the importance of immutability in smart contracts from a regulatory perspective at the Bitcoin Policy Summit. He stated that immutability is crucial in order to avoid legal liability, and that adjusting contracts through mechanisms such as multi-signature or governance voting could potentially lead to legal consequences. Van Valkenburgh also mentioned the Uniswap case, which was dismissed in August last year, as it supported his viewpoint that code developers are not responsible for the fraudulent activities of third parties on their platforms. However, he acknowledged that immutable smart contracts may still pose potential problems, such as lack of scalability and technical integration, or the inability to stop losses in the event of an attack. Van Valkenburgh believes that the regulatory standards will become clearer once the case involving Roman Storm, co-founder of Tornado Cash, concludes. He also highlighted the differing regulatory standards in the US regarding cryptocurrency crimes. The article concludes by mentioning the Bitcoin Fog case as an example that developers should be cautious of.