They are probably surveillance-coin maxis and fear the truth.
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Possibly. It felt like "guilty by association", some people do bad things with a tool, so the tool itself (or anyone curious about it) becomes suspect. Similar to the “we should have an unencrypted web so the government can catch bad guys more easily” crowd. My take is let them use the tools and capabilities they already have, and develop better ones if needed to catch the bad guys. Making everything weaker for everyone so their job is easier is a bad trade and laziness.