On Tuesday, the European Parliament approved new regulations that would require smart contracts to include a kill switch for resetting activity.
These regulations were part of the Data Act, a bill introduced in 2022 to give people greater control over data from smart devices. Lead lawmaker Pilar del Castillo Vera said the new rules would empower consumers and companies. The bill includes provisions for access controls and trade secret protection. However, some experts worry that the kill switch feature could undermine the purpose of smart contracts.
Thibault Schrepel, a specialist in blockchain legal issues, tweeted that the legal text is unclear about who would have to activate the kill switch and that it interferes with the principle that smart contracts cannot be altered. Del Castillo Vera and other lawmakers will negotiate with EU member countries to finalize the law.