One of the recent laws in Trek that gets looked at a bit, is the genetic engineering ban within the Federation. It appears to have been passed as a direct result of Earth's Eugenics Wars, to prevent a repeat, and seems to have been grandfathered into Federation law, owing to the hand Earth had in its creation.
But we also see that doing so came with major downsides. The pre-24th century version of the law applied a complete ban on any genetic modification of any kind, and a good faith attempt to keep to that resulted in the complete extinction of the Illyrians.
In Enterprise, Phlox specifically attributes the whole issue with the Eugenics Wars to humans going overboard with the idea of genetic engineering, as they are wont to do, trying to improve/perfect the human species, rather than using it for the more sensible goal of eliminating/curing genetic diseases.
Strange New Worlds raises the question of whether it was right for Earth to enshrine their own disasters with genetic engineering in Federation law like that, particularly given that a fair few aliens didn't have a problematic history with genetic engineering, and some, like the Illyrians, and the Denobulans, used it rather liberally, to no ill-effects.
At the same time, people being augmented with vast powers in Trek seems to inevitably go poorly. Gary Mitchell, Khan Noonien-Singh, and Charlie X all became megalomaniacs because of the vast amount of power that they were able to access, although both Gary and Charlie received their powers through external intervention, and it is unclear whether Khan was the exception to the rule, having been born with that power, and knowing how to use it properly. Similarly, the Klingon attempt at replicating the human augment programme was infamous, resulting in the loss of their famous forehead ridges, and threatening the species with extinction.
Was the Federation right to implement Earth's ban on genetic engineering, or is it an issue that seems mostly human/earth-centric, and them impressing the results of their mistakes on the Federation itself?
Think I remember hearing that some Ilyrians chose to undo their modifications in order to be able to integrate with the Federation.
And that when a planet with modified Ilyrians joined the Federation, those, who were augmented became second class citizens who were look down upon, so my bet is on a full on Federation ban.