Encryption is the process of encoding data or communications in a form that only the intended recipient can understand. The encryption debate encompasses two main issues. The first is whether there should be any restrictions on the domestic use and sale of encryption technology, and in particular, whether domestic users must place their keys in escrow with the government or some neutral third party. Current law does not have any such restrictions. The second issue is whether there should be restrictions on the export of encryption technology.
Current law regulates the export of encryption technology in the same manner as military technology.
To date, the State Department has generally only allowed the export of relatively weak encryption technology. With respect to the domestic use of encryption, the Administration generally favors a key escrow system, and its representatives will explain more about this proposal shortly. The law enforcement and national security agencies believe that a key escrow system is necessary to maintain their ability to perform lawful wiretaps and to read computer data obtained through lawful means. The computer industry, the larger business community, and privacy groups oppose any mandatory key escrow system. They believe that a mandatory system would unnecessarily invade the privacy of users and that law enforcement can solve its problems by acquiring better technology to decode encrypted materials.