Export controls were a pain in the ass, but strong cryptography (or what we considered to be strong crypto at the time) was prevalent during the worst of it. Cryptography itself was never outlawed.
Useless semantics. Just because that strong crypto was somewhat de facto while the gears in washinton turned, doesn't negate the fact that the US has and still has a Orwellian slant to technology law, predicated on the desire for control and power over everyday interactions.