As cyber threats evolve and cryptographic standards mature, companies must ensure the technologies protecting sensitive data remain secure and compliant. One of the more significant security changes in recent years is the industry’s transition from FIPS 140-2 to FIPS 140-3, the latest U.S. federal standard for cryptographic modules.
For organizations that operate in regulated industries or exchange data with government agencies and compliance-driven partners, this transition has important implications. While many businesses will experience little direct impact, others will need to assess and update their security configurations before adopting software releases that support FIPS 140-3.
What is FIPS, and why does it matter?
The Federal Information Processing Standards (FIPS) are published by the U.S. National Institute of Standards and Technology (NIST) and define requirements for cryptographic modules used to protect sensitive information. FIPS validation is performed through the Cryptographic Module Validation Program (CMVP), operated jointly by NIST and the Canadian Centre for Cyber Security.
FIPS compliance is mandatory for U.S. federal agencies, federal contractors handling sensitive data, organizations exchanging data with FIPS-mandated partners, and highly regulated industries.
More broadly, many private-sector businesses encounter FIPS requirements when exchanging data with customers, suppliers, healthcare networks, financial institutions, or government entities that mandate validated cryptographic controls.
Why the industry is moving to FIPS 140-3
FIPS 140-2 served as the dominant cryptographic validation standard for more than two decades. In 2019, NIST approved FIPS 140-3, which supersedes FIPS 140-2 and aligns U.S. cryptographic requirements with the international ISO/IEC 19790 standard.
The transition reflects a simple reality: security standards must evolve as computing capabilities advance and new cyber-attack techniques emerge.
Many algorithms, cipher suites, hash functions, and key lengths considered secure when FIPS 140-2 was introduced in 2001 no longer provide the same level of protection today. FIPS 140-3 strengthens the validation process and removes support for technologies that have become vulnerable.
As of September 21, 2026, FIPS 140-3 is the only valid standard for government procurement and regulated-industry compliance.
Stronger security through modern cryptography
The transition to FIPS 140-3 is not simply a compliance exercise; it’s also a huge security improvement. Organizations increasingly face sophisticated threats that can exploit weak encryption, outdated protocols, and vulnerable key management practices. FIPS 140-3 helps address these risks by requiring stronger cryptographic implementations and eliminating algorithms that are no longer sufficiently secure.
20 years of cryptanalytic research have flagged the following:
- Weak hash functions can be reverse-engineered or collision-attacked
- Legacy encryption ciphers fall to modern computing power
- Short keys are now feasibly factorable
- Older TLS versions expose past sessions if a key is compromised
A practical approach to preparing for FIPS 140-3
The most successful transitions start with visibility. Organizations should identify any cryptographic categories that may be affected, including public key algorithms, SSH ciphers, encryption algorithms, and TLS ciphers. Any configurations that are noncompliant with FIPS 140-3 can be reviewed and remediated.
Axway B2B Integration is bringing FIPS 140-3 compliance to B2Bi with the 2.6 UP2026-09 release, in line with the industry deadline. Current B2Bi customers can take advantage of a FIPS 140-3 readiness tool that analyzes a system export and identifies configurations that are not compliant with FIPS 140-3 requirements. The tool generates a detailed report that teams can use to plan remediation activities before upgrading to the latest version.
An opportunity to strengthen security and trust
The move from FIPS 140-2 to FIPS 140-3 marks an important milestone in the evolution of enterprise security. While compliance deadlines are the main drivers of the transition, the broader objective is stronger protection for the sensitive information organizations exchange every day. By modernizing cryptographic controls, eliminating legacy vulnerabilities, and aligning with current industry standards, organizations can improve security posture while maintaining compliance and partner trust.
For organizations using B2B integration solutions, early preparation is the key to a smooth transition. Understanding your current cryptographic landscape today can help avoid disruption tomorrow and ensure your business remains ready for the next generation of secure digital collaboration.
Ready to take the next step toward FIPS 140-3 compliance?
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