Problem with insider trading isn’t the insider trading per se. It’s the corruption that flows from it. If you legalize it, expect bribery, kickbacks, etc. to become a normal part of doing business for people in senior management of publicly traded companies. A lot of people who have no moral qualms about insider trading, also will have no moral qualms about buying said inside information.
“If you legalize it, expect bribery, kickbacks, etc. to become a normal part of doing business...”
What you’ve written is the CURRENT reality. Making it no longer illegal would actually free a bunch of this up.
A non-disclosure agreement is still binding law - that’s a totally different issue.