The issue isn’t just whether officials actually use insider information. It’s that they have access to information and influence that ordinary investors don’t. If someone has the power to affect a company’s value and also personally owns that company’s stock, there’s an unavoidable conflict of interest—or at least the appearance of one. Banning individual-stock trading removes that conflict while still allowing officials to invest in diversified funds.”
I don't think a blanket ban makes sense, because owning stocks is pretty normal and it feels like we're singling people out just for taking a job. Maybe there should be some disclosure or something, but an outright ban seems like overkill to me.