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The Federal Government has a large input on how encryption is used in everyday life. Because a large amount of software and standards development takes place in the United States, the Federal Government controls how ubiquitous encryption technology is in a variety of ways. Congress has considered legislation ranging from preventing the distribution of software to forcing (by law) and encryption method to have a back door known to government agencies.
Compared to what has been proposed in the past, the US Government currently has a relatively laissez-faire approach. However, the US Department of Commerce has a powerful influence on government policy in that regard. The US Commerce Secretary, as the head of that organization, will help to set US encryption-related policies. We can foresee the direction those will take by looking at Judd Gregg, President Obama’s appointee for Commerce Secretary.
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* Update * Mr Gregg has declined to accept the cabinet position, claiming that it is “too difficult” for him.
