The federal government has passed a law (18 US Code 2511) that prohibits the interception of encrypted radio communications.
The purpose of encrypting radio traffic is to keep the communications private so that 'bad guys' can't listen to the 'good guys'. While there are several types of encryption processes in radio use, probably the most common is AES or Advanced Encryption Standard. Receiving radios have to have an algorithm or key on how the transmitting radio 'scrambled' that digital stream. However a transmitting radio using encryption will 'scramble' the 0's and 1's around. Scanners will re-convert these 0's and 1's back into a voice signal. As you probably know, P25 is where a voice signal is transformed into digital, which is a series of 0's and 1's.
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