Lighter CEO: DeFi shouldn't be the antithesis of regulators, AI, or democratize finance

Comparing news, Lighter CEO Vladimir Novakovski said at the first meeting of the US CFTC Innovation Advisory Committee that DeFi has been misunderstood for a long time and should not be viewed as the antithesis of regulators. He pointed out that DeFi transactions are recorded in an on-chain ledger in a verifiable manner, which helps regulators work on transparency, consumer protection, and fair market equity.

Novakovski said that decentralized and verifiable finance is expected to become an important part of America's future financial infrastructure. In particular, in terms of cybersecurity and operational resilience, the industry should push for more technologies to open source and verifiable technology stacks.

Furthermore, he said that AI has an opportunity to democratize finance, and users can use AI to construct a package of transactions or investment strategies based on their own judgments in macroeconomics, industry, etc. In the past, such capabilities were mainly aimed at high-net-worth individuals and professional fund managers.

Novakovski pointed out that the main risks facing AI in the financial sector are consumer protection risks, such as users not understanding the actual effects of AI models, or model functions being misrepresented. Therefore, before the AI model is applied to consumers on a large scale, it is necessary to establish a corresponding sandbox mechanism and verify the model's effectiveness and formalized verifiability.