I do think that encryption is firmly outside of the amateur culture in most cases, but legality is well covered here: https://www.n5dux.com/ham/files/pdf/Data%20Encryption%20is%2...
I mean, in a sense it was - you're trying to make thing with long runs of patterns look as much like noise as possible, which is the goal of encryption - but in order for it to work as a modem both ends have to have the same "key" which was a very short LFSR that would pull into sync during the training burst.
In practice, at least in the UK, you can more-or-less do what you like as long as you're not making a nuisance of yourself. You literally cannot pay Ofcom to investigate anything on the amateur bands, although you might get a lot of grumbling from daft old bastards.
Also, do bear in mind that most people don't need to care what the FCC says, or stick to their rules. I'm currently operating equipment that quite thoroughly violates FCC rules, and there's not a thing anyone can do about it :-D