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The root of the conflict lies in the FTC's proposals to implement so-called "emergency switches" — mechanisms capable of halting operations upon detecting suspicious activity. At first glance, this seems like a reasonable protective measure. However, Consensys points out a critical flaw in this approach: strict requirements ignore the unique architecture of decentralized protocols.
The main concern is that excessive regulation could unintentionally undermine transparency in industry security practices. When regulators impose specific technical solutions, developers lose flexibility in creating innovative protection mechanisms tailored to the unique characteristics of each protocol. In the Nomad case, this position of Consensys reflects a broader debate: should authorities dictate technological standards or allow the industry to develop its own solutions while maintaining overall security principles.