U.S. to Ease Data-Scrambling Exports

Commerce Secretary William Daley plans to announce today that the government will give U.S. software companies new freedom to export their most sophisticated data-scrambling technology to financial institutions chartered in 45 countries, according to administration sources. Under the new rules, which officials said are likely to take effect in late summer, eligible banks, securities firms, brokerage houses and credit card companies will need to receive approval only once from the Commerce Department before they can license the most sophisticated “encryption.” Once they receive approval, those institutions will be permitted to share the technology with any of their branch offices, except for those in terrorist states. Government sources estimate the new rules will include about 70% of the world’s banks, including the 100 largest.