That loophole is Google and probably cloudflare. Google has their own DNS service, a script tag on nearly every website, half the mobile phone market while being the default search engine on the other half, and provides email to the majority of people. Even if you try not to use their services, they still have an enormous amount of information about you.

Any Govt agency with sufficient power can go to LetsEncrypt and have them either decrypt everything or issue specific certificates that can be decrypted and transparently allow man in the middle monitoring. That so much of the internet is using LetsEncrypt makes it highly likely this is all going on. It's technically possible and the Govt wouldn't allow LetsEncrypt to operate without being able to do this. Really this is true with all devices and encryption allowed to be sold. Unless you secretly meet all their demands they control all the required certifications and access to be able to sell your products, list them on the app stores, etc. It's just a good rule of thumb to consider everything has this starting point unless you design and build the entire hardware and software stack to ensure nothing like this can be done. But you'll never be able to sell it.