No, a standard t3.medium instance does not support AMD SEV-SNP (Secure Encrypted Virtualization - Secure Nested Paging). The t3 family relies entirely on the AWS Nitro System for underlying virtualization and does not have the hardware-level SEV isolation enabled. [1, 2, 3, 4]
So it is only true if you choose IC nodes that are Gen2 with SEV enabled and as far as I am aware there are none yet. Maybe in the near future. And AWS is as you can see tricky to say the least in order to configure a custom not general instance.
*edit 1 -As it is today :
One may even say that a cloud engine is just a special subnet with minimum 4 nodes that can be configured to run with less powerful hardware specs by choice.
Updated the ICP Cloud Engines guide — corrected two things the forum flagged:
SEV (encrypted nodes): moved from “live” to roadmap — there are 0 SEV nodes available today.
Owner-controlled upgrades: also roadmap — today the NNS still upgrades engines like any subnet.
Now split into “real today” (sovereignty, single-tenant, no lock-in, hardware/size choice, flat cost) vs “coming” (SEV, owner-upgrades, GPU). PDF + README updated, same link: