IOW, regulation creates an significant limitation for individuals (being able to sell their shares), for the supposed benefit of individuals (forcing companies to publicly report), even if the selling individual and buying individual are both perfectly fine with the private transaction and situation. This limiting of individuals is of course for their own good, and such limitations are greatly reduced for the wealthy, who can simply bypass the individual and buy direct from the company.

As someone who once had significantly valuable equity in a company that eventually failed, and who asked and was denied the sale of some of that equity, I would have welcomed an opportunity to trade some of that upside to secure against the downside.