The shift to cloud services has brought speed and flexibility, but it has also raised the stakes for data security. Regulators and customers now expect organizations to prove that sensitive information is properly protected. The National Institute of Standards and Technology (NIST) has set the bar with frameworks like NIST SP 800-53, SP 800-171, and FIPS 140-3, which outline how encryption and key management must be handled.
For industries such as defense, aerospace, healthcare, and financial services, NIST standards define the technical safeguards needed to protect sensitive data. Meeting these requirements is more than a compliance exercise; it is essential for maintaining trust, protecting reputation, and ensuring business continuity in the cloud.
StratoKey’s Cloud Data Protection (CDP) Platform encrypts and tokenizes sensitive data before it enters cloud applications, keeping encryption keys under your control, meeting NIST standards, separating your security system from SaaS providers, and reducing the risks of third-party breaches.
NIST is a U.S. agency that develops frameworks, technical standards and controls (including for cybersecurity). For organizations securing data in cloud and SaaS environments, the most relevant publications are:
NIST SP 800-53 Rev. 5: Catalog of security and privacy controls
NIST SP 800-171 Rev. 3: Protecting Controlled Unclassified Information (CUI)
FIPS 140-3: Security requirements for cryptographic modules
Together, these standards form the baseline for encryption, key management, and monitoring needed to secure sensitive data and demonstrate compliance. While the NIST Cybersecurity Framework (CSF) offers a broad model for managing cyber risk, this article focuses on SP 800-53, SP 800-171, and FIPS 140-3 because they define the specific technical controls most relevant to cloud and SaaS security.
NIST makes it clear that sensitive data must be protected wherever it resides or moves. This includes stored data, information transmitted across networks, and data being processed.
“Protect information at rest.” (NIST SP 800-53 Rev. 5, SC-28)
“Employ cryptographic mechanisms to prevent unauthorized disclosure of information during transmission.” (NIST SP 800-53 Rev. 5, SC-13).
FIPS (Federal Information Processing Standards) are a set of publicly announced standards developed by NIST for the U.S. federal government. They cover areas such as encryption, authentication, and data protection. Encryption must use validated cryptographic modules that meet FIPS 140-3 standards (this superseded FIPS-140-2). This ensures algorithms in use are independently tested and approved.
“This standard shall be used in designing and implementing cryptographic modules that federal departments and agencies operate or are operated for them under contract.” (FIPS 140-3, Section 1.1).
NIST guidance requires organizations to protect cryptographic keys with strong controls and keep them separate from untrusted environments (this can include your SaaS provider). “Protect cryptographic keys from unauthorized disclosure and modification.” (NIST SP 800-171 Rev. 3, Control 3.13.16).
Continuous monitoring, auditing, and logging of sensitive data activity are required to maintain accountability and detect potential compromises.
“a. Determine and document the system events that need to be logged… b. Review and update the logged events… c. Provide a rationale for why the event types are deemed adequate to support after-the-fact investigations.” (NIST SP 800-53 Rev. 5, AU-2: Event Logging).
StratoKey encrypts or tokenizes sensitive data before it enters SaaS and cloud platforms. This ensures that:
Data at rest in third-party applications is already encrypted with FIPS 140-2/3 validated modules.
Data in transit between users and applications is protected through StratoKey’s transparent gateway.
Data in use (e.g., processed inside SaaS applications) remains protected because sensitive fields are not exposed in plaintext.
This supports NIST’s requirements to “protect information at rest” (SP 800-53 Rev. 5, SC-28) and to “employ cryptographic mechanisms to prevent unauthorized disclosure… during transmission” (SP 800-53 Rev. 5, SC-13).
StratoKey’s encryption uses FIPS 140-3 validated cryptographic modules, ensuring compliance with federal standards. By encrypting data before it reaches cloud applications, StratoKey secures sensitive information according to the NIST mandate: “This standard shall be used in designing and implementing cryptographic modules that federal departments and agencies operate or are operated for them under contract.” (FIPS 140-3, Section 1.1).
StratoKey gives organizations complete control over their encryption keys. Keys are generated, stored, and rotated under customer control — never held or exposed to the SaaS providers. This separation aligns directly with NIST’s requirement to “protect cryptographic keys from unauthorized disclosure and modification” (SP 800-171 Rev. 3, Control 3.13.16).
StratoKey provides real-time analytics, audit logs, and monitoring for all sensitive data secured by the StratoKey Gateway. Access can be tracked and reviewed, which aligns with NIST’s call to “determine and document the system events that need to be logged (SP 800-53 Rev. 5, AU-2: Event Logging).
Many regulations don’t create their own technical controls — they reference NIST. CMMC and DFARS point directly to NIST SP 800-171 for protecting CUI. HIPAA maps to NIST guidance on encryption and monitoring. Financial regulators like the FFIEC and OCC also cite NIST when defining expectations.
By aligning with NIST standards, organizations meet these regulatory requirements more easily and establish a foundation that is recognized globally and reflected in frameworks like ISO 27001 and the EU Cybersecurity Act.
The Cybersecurity Maturity Model Certification (CMMC) incorporates the requirements of NIST SP 800-171 Rev. 3, which establishes how organizations must protect Controlled Unclassified Information (CUI). Among its requirements:
3.13.11: Employ FIPS-validated cryptography when protecting the confidentiality of CUI.
3.13.16: Protect cryptographic keys from unauthorized disclosure and modification.
StratoKey encrypts CUI before it leaves your environment, applies FIPS 140-3 validated cryptography, and enforces strict access controls. With strong key management and detailed audit logs, organizations can demonstrate compliance with NIST 800-171 and CMMC obligations.
While ITAR compliance is enforced through DFARS 252.204-7012, which requires contractors to implement the controls of NIST SP 800-171. Additionally, broader defense requirements map to NIST SP 800-53 Rev. 5 security and privacy controls.
Further, ITAR has a specific carve-out for FIPS validated encryption under 22 CFR § 120.54:
"Secured using cryptographic modules (hardware or software) compliant with the Federal Information Processing Standards Publication 140-2 (FIPS 140-2).".
StratoKey ensures ITAR and DFARS-regulated data is encrypted and tokenized before entering cloud platforms, keeping encryption keys under customer control. StratoKey also supports location control, ensuring export-controlled data stays within approved jurisdictions. Real-time monitoring and audit logging align with NIST’s AU-2 and AU-6 controls, giving defense contractors the oversight required under DFARS.
Healthcare organizations face strict requirements under HIPAA, which align closely with NIST’s encryption and data protection guidance. NIST calls for the use of FIPS 140-validated encryption modules, secure key management, and continuous monitoring to protect electronic protected health information (ePHI). By applying NIST-aligned encryption and monitoring, StratoKey helps healthcare providers safeguard ePHI in the cloud, reduce breach risks, meet the HIPAA encryption carve-out and demonstrate compliance with HIPAA’s security rule.
Protecting customer records, payment data, and transaction information requires strong encryption, key control, and auditability. Regulators such as the FFIEC and OCC (and SRO's such as FINRA) often reference NIST publications when setting expectations for cybersecurity. By aligning with NIST requirements, StratoKey enables financial institutions to safeguard sensitive data, maintain regulatory confidence, and reduce exposure to third-party breaches in multi-tenant cloud environments.
| NIST Requirement | NIST Reference | StratoKey CDP Capability | Link |
|---|---|---|---|
| Encrypt data at rest with FIPS modules | NIST SP 800-53 Rev. 5: SC-12 (Cryptographic Key Establishment and Management), SC-28 (Protection of Information at Rest). Requires use of FIPS-validated cryptography. | Field-level AES-256 encryption and tokenization before data reaches the cloud. | SP 800-53 Rev. 5 |
| Protect data in transit | NIST SP 800-53 Rev. 5: SC-13 (Cryptographic Protection), SC-31 (Cryptographic Module Authentication), SC-40 (Wireless Access Restrictions). Requires encryption for data in transit using FIPS-validated algorithms. | Transparent gateway secures data entering and leaving SaaS applications. | SP 800-53 Rev. 5 |
| Maintain control of encryption keys | NIST SP 800-171 Rev. 3: 3.13.11 (Employ FIPS-validated cryptography for CUI), 3.13.16 (Protect cryptographic keys). | Keys remain under customer control and outside SaaS provider environments. | SP 800-171 Rev. 3 |
| Provide monitoring and audit logs | NIST SP 800-53 Rev. 5: AU-2 (Event Logging), AU-6 (Audit Review, Analysis, and Reporting), SI-4 (System Monitoring). | Real-time analytics, anomaly detection, and detailed event logging for sensitive data. | SP 800-53 Rev. 5 |
| Use FIPS-validated cryptography | FIPS 140-3: Federal standard for security requirements of cryptographic modules. Supersedes 140-2. | StratoKey employs FIPS 140-3 validated encryption modules. | FIPS 140-3 |
| Support for CUI / CMMC compliance | NIST SP 800-171 Rev. 3: Control family 3.13 (System and Communications Protection). Requires protecting CUI with cryptographic mechanisms. | StratoKey encrypts CUI before it enters SaaS and enforces access policies. | SP 800-171 Rev. 3 |
| Zero Trust alignment | NIST SP 800-207: Zero Trust Architecture. Requires least privilege, continuous monitoring, and strong data protection at the application and network level. | StratoKey enforces encryption and monitoring before the cloud, supporting Zero Trust strategies. | SP 800-207 |
NIST standards set the security baseline for protecting sensitive data, and compliance with these requirements is critical for regulated industries. Meeting them in the cloud requires more than just relying on SaaS-native encryption.
StratoKey’s Cloud Data Protection Platform delivers encryption, tokenization, key separation, and monitoring directly align with NIST expectations. By securing data before it enters the cloud, StratoKey provides organizations with the control and assurance necessary to achieve compliance, enhance defenses, and safeguard their most valuable information.