The issue focused on the "right balance between security and privacy," according to the report released Wednesday.

"The U.S. government has failed to address the need for better security by adequately addressing the issues associated with encryption, the security and privacy implications, and its practical implications on the use of technology," it said.

The report also called for more research into how to improve encryption standards and how it relates to national security.

"Encryption is an important and important tool to fight crime