Consensys has called on the US Federal Trade Commission (FTC) to prioritize technology-agnostic security measures in its handling of the Nomad hacking incident. This appeal comes via a formal comment letter submitted by the company, emphasizing the need for regulations that foster innovation while protecting consumers in the decentralized finance space.
The backdrop to this development is the FTC’s proposed settlement with Nomad Capital Labs, stemming from a high-profile cyberattack on the Nomad Bridge in 2022.
That event saw hackers exploit vulnerabilities, draining approximately $190 million in digital assets from the cross-chain protocol.
The FTC’s intervention focuses on allegations of misleading security representations by Nomad, aiming to enforce better practices across the industry.
Consensys, a key player in Ethereum-based solutions and the developer of the MetaMask wallet, acknowledges the importance of these efforts.
As a firm deeply invested in user safety, Consensys aligns with the FTC’s objective to curb false claims about security and enhance overall protections for digital asset holders.
However, the company raises concerns about certain aspects of the FTC’s approach.
Specifically, Consensys argues that the proposed order might inadvertently stifle transparency in security practices, which is crucial for building trust in Web3 ecosystems.
By suggesting mandatory technical features like “circuit breakers”—mechanisms designed to halt operations during suspicious activity—the FTC risks imposing solutions that aren’t universally applicable or aligned with current industry standards.
Such prescriptive mandates, according to Consensys, could overlook the unique architectures of decentralized systems, where flexibility and adaptability are key to resilience.
Instead, Consensys advocates for a more neutral framework that focuses on outcomes rather than specific technologies.
This means evaluating security based on effectiveness in preventing harm, regardless of the underlying tools or protocols used.
By adopting this stance, regulators can encourage broader adoption of best practices without favoring one technological paradigm over another.
This is particularly vital in the fast-paced ecosystem of web3 and blockchain, where rigid rules might hinder innovation and deter developers from openly sharing vulnerability information.
Bill Hughes, Senior Counsel and Director of Global Regulatory Matters at Consensys, authored the blog post announcing this initiative on January 21, 2026. In it, he underscores the company’s commitment to collaborative regulation, noting that user security remains “paramount.”
The full comment letter, available publicly, delves deeper into these arguments, providing a blueprint for how agencies like the FTC can support the growth of decentralized technologies while safeguarding public interests.
This intervention by Consensys reflects broader industry anxieties about overreach in crypto regulation.
As DeFi continues to mature, striking a balance between accountability and innovation will be essential. If heeded, the FTC‘s adoption of tech-neutral standards could set a precedent for future cases, promoting a safer digital economy.