Wouldn't a smart contract that deals with regulated markets need legal paper work to be legal?

Question

By regulated markets I mean: finance, gambling and insurance, but also others.

So let's say, you have your DAC (is that still common terminology?) and let's say you figured out some oracles that feed the DAC with real world events so that the DAC can function.

But the DAC is operating in a regulated market. What is the legality of this thing?

• Are the developers required to file paperwork?
• Are the oracles, presumably people "employed" by the DAC, to feed it with real world events, required to file paperwork?
• Are the clients of this DAC required to file paperwork?

I know this is still a gray area, but I welcome any relevant information.

Note: I noticed the terminology regarding oracles has changed. I am using "oracle" to mean any input of data from real world to the DAC.

Jurisdiction: EU and US

Answer 1

I told my lawyer I want him to write a very simple paper contract. It would have a single line: "The two parties signed below agree that the terms of this contract are fully described in the Solidity source code at address 0x...whatever..." That's it. That's the entire contract. Then both parties would send a transaction with those words in the 'input' data field.