You just hit the nail on the head—the information advantage is real. But here's why 'clear rules' fall apart: we already tried that. The STOCK Act of 2012 made insider trading illegal for Congress, yet dozens of lawmakers break transparency rules every year with basically zero penalty, routinely outperforming professional Wall Street investors.
A blanket ban on individual stocks isn't assuming everyone will cheat—it's standard risk management. We ban judges from presiding over cases involving their family members. We ban NBA referees from betting on basketball. We don't do that because we assume every judge or ref is corrupt; we do it because the appearance of corruption ruins public trust. Plus, nobody is saying they can't invest for retirement—they can still hold broad index funds, mutual funds, or blind trusts. They just shouldn't be buying and selling individual companies while writing the laws that govern them.