From my security book...cuz im bored
"NSA has veto power over the NBS (national bureau of standards) in matter of cryptography.
Comes from executive directive called NSDD-145 that gave NSA the authority to develop a national
policy on computer and communications security. The directive extends the authority of the NSA beyond
government agencies to the private sector. "
Basically NSA saw that (regards to other question) 128 bits would be too strong and hard
for them to crack it, which would pose a national security risk, ie they can't read your encrypted
messages which might be say...terrorists related (nowadays). So they water downed the algorithm
and since it was meant FOR THE PRIVATE SECTOR...they had control over other government agencies
in the matter