The United States remains concerned about the "balance" Bangladesh strikes between national security and individual freedom.
The concern came at the Congressional hearing on the human rights in South Asia, according to a document of the congressional committee revealed on Wednesday.
In the hearing chaired by chairman of the Congressional Committee on Foreign Affairs Brad Sherman also raised the issue of the violation of human rights due to the National Registration of Citizenship in Assam.
In her remark the US assistant secretary ambassador Alice Wells said Bangladesh can be an example of tolerant and liberal Muslim-majority country in the world.
Nevertheless, she said, "we remain concerned over the balance struck by the government between the individual freedom and the national security."
This prevents the political opposition and the civil society from playing their roles, she added.
She also lauded Bangladesh, which seeks the middle income status, for playing "an extraordinary role" in providing shelter to around one million Rohingya refugees.
In response to the question by a committee member, Ms Wells said the solution to the Rohingya crisis lies in Burma (Myanmar) and that country has to create the circumstances for the safe and dignified return of the refugees to their country.
They have to be provided with all the economic rights, educational rights and the citizenship rights.
She said the US has imposed sanction on some top military officers of Burma to put pressure and it will continue to do so.
Ambassador Wells also said that since the beginning of the crisis, the US government has been providing assistance to Bangladesh to resolve the crisis and is committed to continuing the support.
The US so far has provided US$550 million for the relief efforts, she mentioned.
Responding to another question, she said the US urged the Indian government to ensure that the NRC process would not be discriminatory against the Muslims as there was a public statement by some leaders that only Muslims would have to provide citizenship documents.
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