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Is Australia trying to project it's anti-encryption law onto U.S. Companies through the ClOUD Act? I don't understand what is going on here.

From my understanding yes, it's in the same sense as GDPR where "if you do business with our citizens, you play by our rules".

First, EARN IT, now this, so many attacks on encryption lately.

For the first time ever, “FIPS to the rescue?”