Take the STOCK Act of 2012. That's my starting point. Congress passed it after a scandal showed lawmakers trading on insider info, and it made that illegal, slapped on disclosure requirements, and created real penalties. So we already have a law targeting the actual problem, which is trading on non-public information. Not investing in general.
Let me define my terms: we're talking about elected officials and high-level appointees, not every bureaucrat. For them, a blanket ban goes too far. It treats buying a mutual fund the same as tipping off a hedge fund about a pending regulation. Those aren't the same thing, and the law already draws that line.
Here's the part that matters: banning stock ownership actually creates a different conflict. If an official can't hold assets tied to the market, their policy decisions become more detached from real economic consequences. Skin in the game isn't corruption—it's accountability. I agree there are ethical risks, but the answer is transparency and enforcement, not pretending officials can't behave.