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It would be interesting if you made insider trading legal but you had to disclose the information you traded on.

You'd remove the whole point of gaining an edge, rendering the trade moot.

Nope. You're ignoring the timing.

If I sell and then disclose a failure in regulatory compliance that requires a redesign, or buy and then disclose the R&D breakthrough, I've won.

insider trading =/= failure in regulatory compliance.