According to Patrick McCorry, there is a significant friction between the deployment of immutable smart contracts and effective user protection in the crypto market. McCorry warns that if regulations focus solely on encouraging developers to create truly immutable smart contracts, it could undermine long-term user safety. For crypto traders, this highlights a potential risk: once an immutable contract is deployed, vulnerabilities or unforeseen issues cannot be patched, increasing the exposure to permanent losses and exploitation. This regulatory approach could affect the security landscape of DeFi protocols and alter risk assessment strategies for active traders. Source: Patrick McCorry

According to paulgrewal.eth, the Fifth Circuit has ruled that immutable smart contracts are not considered 'property' under the International Emergency Economic Powers Act (IEEPA), leading to the conclusion that Tornado Cash must be delisted. However, the court did not order the Office of Foreign Assets Control (OFAC) to 'set aside' the listing as per Section 706 of the Administrative Procedure Act (APA).