Passwordless Authentication and the Identity Perimeter

by Continuum GRC Feb 18, 2026 0 Comment

Passwordless authentication is a potential lynchpin for organizations struggling with identity as their security perimeter. While neither FedRAMP nor CMMC explicitly mandates passwordless technologies, both frameworks set requirements and outcomes that passwordless authentication can meet.

For organizations operating in regulated environments, especially those handling government data or CUI, passwordless authentication is no longer an emerging trend. It is rapidly becoming the most defensible approach to meeting modern compliance expectations.

Why We’re Moving Away from Passwords

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Passwords are, in many ways, a relic of a past era of security. They were for local, rare threats. Today’s attackers, on the other hand, operate at scale, automating identity threats across apps and infrastructure.

From a compliance standpoint, this is a major problem. Frameworks like FedRAMP and CMMC require organizations to demonstrate strong authentication that not only resists attacks but also integrates with layered protections, including biometrics and device security. Password-based systems struggle to consistently meet those expectations, even when layered with MFA.

This is why regulators and assessors are increasingly focused not on whether MFA exists, but on whether authentication mechanisms are inherently resistant to compromise.

What Passwordless Authentication Actually Solves

Passwordless authentication is an approach in which there’s no need to remember or communicate a shared secret, such as a password. Instead, these systems rely on cryptographic proof of identity.

Most passwordless systems rely on one or more of the following:

Hardware-backed cryptographic keys
Public-key infrastructure (PKI)
Biometric authentication
Device-bound credentials
Challenge–response authentication

The critical distinction is that credentials are never transmitted or reused. Authentication relies on asymmetric cryptography, which eliminates entire categories of attack that plague password-based systems.

From a compliance perspective, this matters because it aligns directly with how FedRAMP and CMMC define secure authentication, even if they do not prescribe the technology by name.

Passwordless Authentication in the Context of FedRAMP

FedRAMP is built on NIST SP 800-53, and passwordless authentication supports these outcomes across several control families, particularly those governing identity, access control, and cryptographic protections.

What assessors evaluate in practice is whether an organization can demonstrate that:

Authentication mechanisms are resistant to phishing and replay attacks.
Credentials are cryptographically protected.
Privileged access is tightly controlled.
Identity proofing is reliable and auditable.
Authentication events are logged and monitored.

Passwordless authentication makes these requirements easier to meet by removing many of the inherent failure points of passwords. There is no password database to protect and no reuse across systems.

This is one reason why many FedRAMP-authorized cloud service providers now rely on hardware-backed authentication or certificate-based access for administrative and developer access.

Passwordless Authentication and Zero Trust Alignment

FedRAMP increasingly aligns with Zero Trust principles promoted by CISA and NIST. In a Zero Trust model, access decisions are based on identity, device posture, and context.

Passwordless authentication fits naturally into this model because it binds identity to a specific device and enables continuous verification with that device. It doesn’t rely on network trust mechanisms and, as such, can limit lateral movement into other systems… a core tactic of APTs.

Passwords are poorly suited to this role because they offer no inherent trust signal beyond possession of a string of characters. Passwordless authentication, by contrast, provides strong, verifiable identity assurance that can be evaluated in real time.

How Passwordless Supports CMMC Requirements

CMMC is, in some ways, more cut-and-dry than FedRAMP, particularly at Levels 2 and 3, where organizations must demonstrate strong controls to protect against top-tier international threats. Several CMMC practices align directly with passwordless authentication, including requirements for multifactor authentication, cryptographic protections, replay resistance, and strong identity assurance.

For organizations pursuing CMMC Level 2 or preparing for Level 3, passwordless authentication helps satisfy expectations around:

Satisfies Multi-Factor Authentication Requirements Without Weak Dependencies: Passwordless authentication inherently meets CMMC’s MFA expectations by combining possession with biometric or PIN verification. Because these factors are cryptographically linked and cannot be separated, they provide stronger assurance than traditional password-plus-code implementations.
Eliminates Password-Based Attack Vectors Addressed by CMMC: Passwordless authentication removes the most common causes of access compromise, including phishing, credential reuse, brute-force attempts, and password database exposure. This directly supports CMMC’s objective of reducing unauthorized access through the use of stolen or guessed credentials.
Provides Native Resistance to Phishing and Replay Attacks: Because authentication relies on cryptographic challenge–response rather than shared secrets, passwordless authentication prevents attackers from reusing captured credentials or replaying authentication attempts. This aligns with CMMC requirements for protecting authentication mechanisms and preventing replay attacks.
Improves Identity Assurance for Access to CUI: CMMC emphasizes strong identity verification for users accessing Controlled Unclassified Information. Passwordless authentication binds identity to a specific user and device, reducing ambiguity and ensuring access decisions are based on verifiable, high-assurance credentials.
Supports Least Privilege and Role-Based Access Enforcement: Passwordless authentication integrates cleanly with role-based access control and conditional access policies, making it easier to enforce least privilege principles required under CMMC without relying on compensating controls or manual oversight.
Reduces Insider Threat and Credential Misuse Risk: Because private keys cannot be copied or shared, passwordless authentication significantly limits insiders’ ability to misuse credentials or share access. This aligns with CMMC’s focus on protecting systems from both external and internal threats.

The Strategic Case for Passwordless Authentication

Both FedRAMP and CMMC are moving toward stronger identity assurance, continuous monitoring, and Zero Trust-aligned architectures. Passwordless authentication fits naturally into that trajectory.

We provide risk management and compliance support for every major regulation and compliance framework on the market, including:

And more. We are the only FedRAMP and StateRAMP-authorized compliance and risk management solution worldwide.

Continuum GRC is a proactive cybersecurity® and the only FedRAMP and StateRAMP-authorized cybersecurity audit platform worldwide. Call 1-888-896-6207 to discuss your organization’s cybersecurity needs and learn how we can help protect your systems and ensure compliance.

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