There needs to be some clarification here...
If we're talking about digital encryption or digital modulation.
There's nothing illegal about demodulating a digital signal. Its just a different way of imposing a signal on a carrier wave. There are some scanners that can demodulate a digital signal right now.
Departments have been using digital encryption for a while in some units. I doubt it will see widespread use because of additional cost and lack of interoperability with other radio systems. Of course, this is just my opinion and there may be some departments that have deep enough pockets and are paranoid enough about the public listening into a cop doing a traffic stop that it may happen.