From: Adam Shostack <adam@homeport.org>
Date: Sun, 11 May 1997 23:27:46 +0800
To: jya@pipeline.com (John Young)
Subject: Re: Admin Feigns Back Off On Crypto Bill
In-Reply-To: <1.5.4.32.19970509195541.0090c6d0@pop.pipeline.com>
Message-ID: <199705111443.KAA08859@homeport.org>
MIME-Version: 1.0
Content-Type: text/plain


John Young wrote:
| BTW, another report claims that proposed new regs will allow 
| banks the special privilege of strong crypto if they come up 
| with an acceptable KMI within two years.

	This is entirely newspeak and nonsense to drive a 'flick the
switch' shift to GAK.

	Banks already have FINCEN, the IRS, and the FDIC constantly
deep inside their books for whatever purpose the Feds deem
appropriate.  There is absolutely zero call for KR within banks.  (I'm
assuming that an acceptable KMI means KR.  After all, the NSA wrote
the current banking KMI (X9.17, X9.9), and it doesn't seem to have any
KR in it.  The ABA wrote the latest revs of those specs to use 3des,
which seemingly takes them out of the realm of acceptable.)

	Analagous arguments can be made about brokerages and other
NBFIs and the SEC, or other branches of government.  I've heard a
story, may be urban legend, that the SEC recently sent someone to jail
on insider trading on the basis that his father made a huge profit on
a stock deal.  There was no phone or mail traffic recorded that would
indicate collusion.  Someone (Unicorn?) may have a reference.

Adam

-- 
"It is seldom that liberty of any kind is lost all at once."
					               -Hume