There needs to be a coordinated response from the football league clubs, as others have said this is part of the creep towards premier league b teams entering the leagues. My interest has massively wained in the past 5 years as football has continued it's meteoric rise up it's own arsehole, the way the football league is increasingly marginalised and treated like a support function of the premier league just compounds the feeling that football in this country is being taken from the supporters and handed to the corporations. I think this and the inevitable subsequent addition of b teams to the football league pyramid will effectively kill the lower leagues and a number of clubs will go to the wall as interest drops of a cliff.
The football league needs to start dictating terms or considering going it's own way. Limits on numbers of transfers per season, limits on squad size (contracted professionals, youth team contacts), registration of squads for competitions similar to how European competitions are run, quotas for uk born players etc should all be considered as ways to protect the integrity of the structure of the English leagues and the compression as a whole. It would hurt the top teams and probably disproportionately those that rely on cheap foreign players to compete in the premier league initially but something drastic is required and short termism and greed have seriously damaged the leagues and the national game. I doubt there is anybody at the FA principled or brave enough to push any of the major changes required though.