Nothing wrong with ZIP files....
The mistake this legislator is making is confusing the idea of a compressed tarball -- which is what a ZIP file is in real life -- with an encrypted channel. The built in encryption in these compression programs is OK for everyday use where it really doesn't matter that much if an adversary accesses those files but its wholly inadequate for secure communications. Adding whatever the algorithm-du-jour to the tarball's encryption won't help that much either because people don't crack encrypted data, they go after the key generation and distribution mechanisms. (So your AES-2048 encrypted data isn't going to be very secure if the key's just a hash of "Pa$$w0rd" with it written on a PostIt stuck to your monitor!)
For now if I want to move ZIP about securely I'll just use PGP. I'm just an ordinary person, not a bank or intelligence agency, so my communications aren't very interesting and don't really need iron clad security -- in fact if anyone wants to crack them have at it.....
Biting the hand that feeds IT
