FIPS stands for “Federal Information Processing Standards.” It's a set of government standards that define how certain things are used in the government–for example, encryption algorithms. ... “FIPS mode” doesn't make Windows more secure. It just blocks access to newer cryptography schemes that haven't been FIPS-validated.
Is FIPS secure?
FIPS 140-2 has also become the de-facto standard for encryption beyond the federal government and is recognized as an important security standard outside the United States.
Why FIPS mode is particularly onerous?
Why FIPS mode is particularly onerous
Perhaps the biggest problems incurred by enabling FIPS mode involve applications that use the . NET Framework. If FIPS mode is enabled, the . NET Framework disallows the use of all non-validated cryptographic classes.