Earlier quoted context omitted.
The amateur public radio bands are supposed to be open and useful to everyone so the broadcasts in those spectra are supposed to be readable by everyone as part of the accessible part. On top of that encrypted transmissions would be basically noise pumped into the system making the open uses more difficult and harder to police.
what about steganography?
While it doesn't call out encryption by name it more broadly prohibits "messages encoded for the purpose of obscuring their meaning." I take that to include both encryption and obfuscation methods like steganography.