There was a question many years back on this:
https://communities.sas.com/t5/General-SAS-Programming/Reading-from-an-encrypted-database/td-p/17212...
Basically from my understanding, you pass your details over to the database, and that should then feedback plain data. The database can't send over encrypted data as SAS would then need to implement in the driver a de-encryption for the specific encryption you have used.
So the database should send plain data based on the access rights given in the connection. If the database encrypts things, then it is up to the database to de-crypt them too.