# Legal Compliance Evaluation of Smart Contracts Generated By Large Language Models

arXiv: https://arxiv.org/abs/2506.00943 · HTML: https://mlsanity.com/paper/2506.00943/

## Key facts

- Cited by 1 papers in the map (data through 14 Oct 2026).
- Builds on 13 of its 40 references that are in the map.
- First posted on arXiv 1 Jun 2025.

## Builds on (most cited first, 13 of 13)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Evaluating Large Language Models Trained on Code](https://mlsanity.com/paper/2107.03374/) (2021)
- [GPT-4o System Card](https://mlsanity.com/paper/2410.21276/) (2024)
- [Program Synthesis with Large Language Models](https://mlsanity.com/paper/2108.07732/) (2021)
- [Gemini 1.5: Unlocking multimodal understanding across millions of tokens of context](https://mlsanity.com/paper/2403.05530/) (2024)
- [Is Your Code Generated by ChatGPT Really Correct? Rigorous Evaluation of Large Language Models for Code Generation](https://mlsanity.com/paper/2305.01210/) (2023)
- [Plan-and-Solve Prompting: Improving Zero-Shot Chain-of-Thought Reasoning by Large Language Models](https://mlsanity.com/paper/2305.04091/) (2023)
- [LegalBench: A Collaboratively Built Benchmark for Measuring Legal Reasoning in Large Language Models](https://mlsanity.com/paper/2308.11462/) (2023)
- [Manticore: A User-Friendly Symbolic Execution Framework for Binaries and Smart Contracts](https://mlsanity.com/paper/1907.03890/) (2019)
- [Blockchains for Business Process Management - Challenges and Opportunities](https://mlsanity.com/paper/1704.03610/) (2017)
- [Using Large Language Models for Generating Smart Contracts for Health Insurance from Textual Policies](https://mlsanity.com/paper/2407.07019/) (2024)
- [VeriSolid: Correct-by-Design Smart Contracts for Ethereum](https://mlsanity.com/paper/1901.01292/) (2019)

## Built on by (most cited first, 1 of 1)

- [Prompt to Pwn: Automated Exploit Generation for Smart Contracts](https://mlsanity.com/paper/2508.01371/) (2025)

## Abstract (arXiv)

Smart contracts can implement and automate parts of legal contracts, but ensuring their legal compliance remains challenging. Existing approaches such as formal specification, verification, and model-based development require expertise in both legal and software development domains, as well as extensive manual effort. Given the recent advances of Large Language Models (LLMs) in code generation, we investigate their ability to generate legally compliant smart contracts directly from natural language legal contracts, addressing these challenges. We propose a novel suite of metrics to quantify legal compliance based on modeling both legal and smart contracts as processes and comparing their behaviors. We select four LLMs, generate 20 smart contracts based on five legal contracts, and analyze their legal compliance. We find that while all LLMs generate syntactically correct code, there is significant variance in their legal compliance with larger models generally showing higher levels of compliance. We also evaluate the proposed metrics against properties of software metrics, showing they provide fine-grained distinctions, enable nuanced comparisons, and are applicable across domains for code from any source, LLM or developer. Our results suggest that LLMs can assist in generating starter code for legally compliant smart contracts with strict reviews, and the proposed metrics provide a foundation for automated and self-improving development workflows.