Lighter CEO: DeFi Should Not Be Antagonistic to Regulatory Authorities, AI Can Promote Financial Democratization

BlockBeats News, August 21st, Lighter CEO Vladimir Novakovski stated at the first meeting of the US CFTC's Innovation Advisory Council that there has been a long-standing misunderstanding of DeFi, which should not be seen as opposed to regulatory agencies. He pointed out that DeFi transactions are recorded on-chain in a verifiable manner, helping regulatory agencies work on transparency, consumer protection, and market fairness.

Novakovski stated that decentralization and verifiable finance are expected to become a key part of the future US financial infrastructure, especially in terms of cybersecurity and operational resilience. The industry should promote more technology development towards an open-source, verifiable technology stack.

Furthermore, he mentioned that AI has the opportunity to drive financial democratization, allowing users to build a comprehensive trading or investment strategy through AI based on their judgments of macroeconomics, industries, and other fields. Previously, such capabilities were mainly targeted at high-net-worth individuals and professional fund managers.

Novakovski pointed out that the main risk AI faces in the financial field is consumer protection risk, such as users not understanding the actual function of AI models or models being misleadingly advertised. Therefore, before the large-scale consumer-facing application of AI models, it is necessary to establish corresponding sandbox mechanisms, verify the effectiveness of the models, and formalize their verifiability.