Here is a simplified, accessible summary of the FIPS (Federal Information Processing Standards) regime, and a sketch of other U.S. security / communications rules you should know — plus caveats. (If you like, I can also show how these compare with UK/EU equivalents.)
FIPS are a set of standards published by NIST (the U.S. National Institute of Standards and Technology) for use by U.S. federal agencies — and often by their contractors and vendors — especially when handling sensitive information. (NIST) The idea is to establish a consistent, auditable baseline for security practices across systems that process sensitive or regulated data.
Here are key elements and rules in FIPS that relate to data processing and communications:
| FIPS / Related Standard | Purpose / Focus | Key Requirements / Points |
|---|---|---|
| FIPS 199 (Security Categorization) | Defines how to categorise information and systems (for confidentiality, integrity, availability) | Systems/information are rated as Low / Moderate / High along C, I, A dimensions. The “highest” rating across those determines the system’s overall categorisation. (NIST Publications) |
| FIPS 200 (Minimum Security Requirements) | Specifies mandatory security objectives (controls) that federal agencies must meet | Agencies must implement a baseline set of management, operational, and technical controls (drawn from NIST SP 800-53) appropriate to the system’s categorization. (NIST Publications) |
| FIPS 140-2 / 140-3 (Cryptographic Module Security) | Sets requirements for cryptographic modules (hardware or software) used in systems | Defines levels of assurance (from 1 to 4), physical and logical protection, key management, roles, etc. (Microsoft Learn) FIPS 140-3 is the newer version, replacing 140-2. (Wikipedia) |
| FIPS 201 (Personal Identity / PIV) | Specifies identity credentials (Personal Identity Verification) for federal employees and contractors | Defines smart card / credentialing, processes, interoperability, etc. (less directly about communications security) (NIST Publications) |
Beyond pure FIPS, the FIPS framework is usually implemented in conjunction with NIST SP 800-series guidelines (which detail how to implement, assess, tailor controls, etc.). For example:
- NIST SP 800-53 — “Security and Privacy Controls for Information Systems and Organizations”: a catalogue of controls (access control, audit, incident response, encryption, etc.). (NIST Computer Security Resource Center)
- NIST SP 800-37 — Risk Management Framework (RMF): outlines how to integrate security and risk management over a system’s life cycle. (Wikipedia)
So “FIPS data-processing guidelines” is a loose way of referring to the set of compulsory standards (FIPS 199, 200, 140-2/3, etc.) plus the supporting NIST guidance that together govern how data is handled, encrypted, categorised, audited, etc.
- If you build or supply a system that handles sensitive or regulated data for a U.S. federal agency (or in many cases a contractor doing federal work), your cryptographic modules (e.g. TLS libraries, key stores, HSM interfaces) often need to be FIPS-validated (i.e. tested and certified).
- You must categorise the data/services (Low/Moderate/High) and apply the “baseline” controls matching that category.
- You should adopt procedural, operational, and technical controls (access, logging, key management, backups, incident response) as dictated by NIST SP 800 series.
- For communications between parties: you must use approved cryptographic standards, follow secure key management, protect confidentiality, integrity, non-repudiation, etc.
- You must maintain auditability, show proof of compliance, and support assessments and certification.
Because FIPS was never intended to cover everything (e.g. physical security, policy, privacy in full, etc.), an implementing organisation often has to layer additional controls and guidance outside the strict FIPS walls.
When two parties communicate in the U.S., especially across sensitive or regulated domains, simply “FIPS” compliance is often not enough. Here are key standards, frameworks, and regulatory drivers:
| Framework / Rule | Scope | What it demands (relevant to communication or data exchange) |
|---|---|---|
| FISMA / FISMA Modernization Act | Requires federal agencies (and their partners) to secure information systems | Requires risk-based programmes, inventorying systems, categorization (FIPS 199), applying baseline controls (FIPS 200 / NIST SP 800), ongoing monitoring, assessments. (Wikipedia) |
| NIST SP 800-171 (“Protecting Controlled Unclassified Information”) | Applies to non-federal systems that process, store, or transmit CUI (Controlled Unclassified Information) on behalf of the U.S. government | Demands specific controls for confidentiality, system / communications protection, etc. This is often invoked in defense / contracting contexts. (ibsscorp.com) |
| CMMC (Cybersecurity Maturity Model Certification) | Defense supply chain standard | Imposes controlled requirements (largely based on NIST SP 800-171) for contractors communicating with the DoD, etc. (Tyto Athene) |
| NIST SP 800-52, 800-38, etc. | Guidance for TLS, cryptographic standards, modes, key derivation, accepted algorithms | Ensures communications use appropriate, up-to-date cryptographic algorithms, modes, acceptable key lengths, etc. |
| Various sectoral/regulatory laws (e.g. HIPAA, FTC, GLBA, etc.) | Health, financial, consumer data, privacy | May require encryption in transit, encryption at rest, data integrity, audit trails, etc. E.g. under health law (HIPAA), when sending patient data, you often need TLS, logging, access control, etc. |
| Telecommunication / Communications infrastructure rules | For backbone networks, critical infrastructure etc. | There are guidelines for securing telecom network elements (e.g. NIST SP 800-13 “Telecommunication Security Guidelines”) (NIST Computer Security Resource Center) Also rules under FCC / U.S. communications law about supply chain risk, prohibited equipment (e.g. “Secure and Trusted Communications Networks Act”) (Wikipedia) |
| Zero Trust / newer modern architectures | Not mandatory law (yet) but strongly recommended | NIST SP 800-207 offers a model of “never trust, always verify” and insists “all communication is secured regardless of network location.” (CyberArk) |
| Protected Distribution Systems (PDS) / NSTISSI 7003 | For classified-level communication lines | If two parties share classified info (in high-sensitivity settings), physical and electronic safeguards over the communication link (shielding, tamper detection, carrier systems) are mandated. (Wikipedia) |
From a practical standpoint, when you’re designing or assessing communication between two parties in a U.S. regulated context, these are typically required or expected:
- Use of approved cryptographic algorithms / modules — e.g. FIPS-validated modules, TLS 1.2/1.3 in specified modes, no weak ciphers, proper key sizes
- Mutual authentication / identity verification — ensure both ends know who they’re talking to (certificates, mutual TLS, token-based auth)
- Integrity protection / message authentication — MACs, digital signatures
- Confidentiality (encryption in transit) — typically TLS or IPsec, with modern cipher suites
- Perfect forward secrecy (when possible) — avoid reuse of ephemeral keys
- Replay protection / anti-replay / timestamping / nonces — to guard against replay attacks
- Key management, rotation, revocation — how keys are generated, stored, protected, rotated, revoked
- Audit, logging, monitoring — you need evidence of what communications occurred, errors, failures, anomalies
- Protocol / negotiation safety — avoid downgrade, downgrade attacks, etc.
- Continuous monitoring / risk assessment / patching — even once deployed, communications must be re-evaluated.
- “FIPS compliance” is not a guarantee of full security — it addresses a core subset of cryptographic and control requirements, but many risks (e.g. business logic flaws, insider risk, side channels) lie outside its formal scope.
- Transition periods / legacy modules — some older modules (FIPS 140-2) are still valid in “historical” or transitional mode, but the shift to 140-3 is ongoing. (Wikipedia)
- Tailoring is allowed — NIST guidance generally encourages tailoring controls based on risk; you don’t always have to accept the full default baseline if you can justify exceptions.
- Sectoral overlay rules may demand stricter requirements — for example, in defense, in healthcare, in telecom, etc.
- Contractual obligations may force you to adopt additional controls beyond what law demands.
If you like, I can produce a “plain-English checklist** specifically for communication between two parties engaging under U.S. regulated (federal / contractor) settings. Do you want me to do that?
Confidence: 0.87