But developers are typically less aware of regulatory considerations that also need to be designed around, particularly when it comes to what the dapp’s code is and isn’t programmed to do. For example, dapps may have regulatory issues if the code could have been written to stop a user from performing a problematic transaction, but the developers failed to do so. In other words, if a user needs the dapp in order to sign a transaction, it can be argued that the dapp can unilaterally block a transaction from happening. As a result, there may still be regulatory issues to contend with even if the security of the dapp isn’t at issue.
In Creating Better Web3 Experiences, Developers Must Anticipate Regulatory Scrutiny
