Earlier quoted context omitted.
You've missed the point. There is no solution. If you build in your "exceptional access" exception, then the system is broken by design and no one will use it. That's the end of the discussion, there's nothing more to discuss. You can rube goldberg "solutions" all day long, but in the end you're just figuring out ways to deploy a broken system.
The government has a different idea of what constitutes “broken” in this case. Of course adding a third party introduces additional risks. Two parties versus three parties: All can access the clear info; neither scenario is without risk. The goal is to find a solution that minimizes the risks of providing exceptional access. Again, simply arguing that “it can’t be done”, which is of course theoretically true if the g…
There is no minimizing the risk. Your concept is broken. It does not -- and cannot -- provide security of any use. And I don't care what the government thinks about it.