I think we all understand that the medium-term answer to this is replacing C with memory-safe languages; it turns out, this was the real Y2K problem. But there's no clear way for regulations to address that effectively; assure yourself, the major vendors are all pushing forward with memory safe software.
Second of all if you can't push the costs high enough then it becomes time to limit the cash budget of state level actors. Which is hardly without precedent.
For some reason you seem to only be looking at this as a technology problem, while at the core it is far more political. Sure technology might help, but that's the raison d'etre of technology.
It's fun to make fun of old people in ties asking (to us) stupid questions about technology in front of cameras, but at the end of the day, it's a crucial step in actually getting something done about all this.
This wouldn't do anything to stop companies who base themselves in places like Russia. It wouldn't even really do anything to stop those who base themselves in the Seychelles. But, you want to base yourself in a real bona-fide country, like the USA or France or Israel or Singapore? Then you should have to play by some rules.
We do have some of those already.
https://www.faa.gov/space/streamlined_licensing_process/medi...
I doubt they made a deal that didn’t directly served either Israeli or US foreign policy and security interest.
I don’t know about the NSO but another player in mobile tracking (Verint) tho very much more LEO oriented (SS7 tracking) had about a million failsafes that ensure that their software cannot be used to track or intercept US or Israeli numbers.
Currently, some blackhat somewhere finds a vulnerability and sells it to NSO and then NSO sells it to various countries. If Israel forbids such deals, then the same "someone's" (without regard of where they're located - those deals are essentially unregulatable, you might anonymously trade knowledge/PoC for crypto) will sell the vulnerability to NSOv2 headquartered in Panama or Mozambique, and NSOv2 will sell it to the same customers.