This article attempts to shed light on the profound deficiencies in insider-trading law and regulation and identifies ways in which these deficiencies can be overcome. Unlike other types of white-collar crime, insider trading is not conclusively harmful and may in fact be beneficial. Until this hypothesis is fully tested, though, the government’s sweeping crackdown on the practice seems rushed and misguided. Even if insider trading is indeed harmful, the government’s preferred path to deterrence is unnecessarily wasteful. Either way, insider trading is one area of white-collar criminal law where reform is truly needed.