The current encryption methodology (MD5) used by EncryptPassword to connect to databases does not satisfy the FIPS 140-2 encryption standard that is required by the US Federal Government. The FIPS 140-2 compliance standard requires that any hardware or software cryptographic module implements algorithms from an approved list.
More information on FIPS 140-2: https://csrc.nist.gov/publications/detail/fips/140/2/final