It's a mix of both. They know what the armor can do, no one wants that amount of power in a wild card. Protocol because the military cannot plan for it, it's basically a worse violation of gun ban because the weapons in question are of a higher destructive capability, but legislation can't catch him due to no clause in energy weapons or powered exo-suits, or miniature powerplants that operate a pacemaker and powered exoskeleton simultaneously.
Inami's minerva should be a match to the iron man armors at least. He can at least outrun the fastest jet in military arsenal in a dead sprint.
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