On the recordJune 17, 1998
as you have heard, current U.S. policy allows only encryption below the 56-bit key length to be sold abroad. For a long time now, software companies have argued that this level of encryption is so low it provides little security for the information being transmitted over the ``super highway.'' This policy also states that, in the production of encryption stronger than 56-bit, software companies must provide some type of ``backdoor'' access to ensure law enforcement can decode encrypted material. Addressing this from an economic perspective, customers--especially foreign customers--are unwilling to purchase American encryption products with backdoors and third-party access. This is particularly true since they can buy stronger encryption overseas from either foreign-owned companies or American owned companies on foreign soil without these invasive features.
Source
govinfo.gov




