Is it really fair to treat public officials like they can't be trusted at all? I think a lot of them are just normal people doing a job, and owning a few stocks seems pretty ordinary. Banning it feels kind of harsh.
Imagine someone who manages a town budget and also owns a couple shares in a local bank. That doesn't automatically mean they're corrupt, right? Honestly I'm not sure how to argue with the idea that it looks bad, but banning everyone still feels like too much.
Honestly I'm not even sure your point connects to stocks, so maybe that's a fair thing I can't really answer. My gut says the real problem is a few bad actors, not owning stocks itself, so a blanket ban feels like overkill.