Lighter CEO: DeFi should not be the opposite of regulation, AI may drive financial democratization

Lighter CEO Vladimir Novakovski stated at the first meeting of the CFTC Innovation Advisory Committee that DeFi should not be seen as the opposite of regulators, and that on-chain verifiable transaction records assist regulators in their work regarding transparency, consumer protection, and market fairness. He pointed out that decentralized verifiable finance is expected to become an important part of the future financial infrastructure in the United States, and the industry should promote the evolution of technology towards open-source and verifiable directions.

Novakovski also mentioned that AI has the opportunity to drive financial democratization, allowing users to build trading strategies based on their own judgment, a capability that has primarily been available to high-net-worth individuals and professionals in the past. He also warned that the main risk of AI in the financial sector is consumer protection issues, such as users not understanding the actual functions of models or being misled by deceptive advertising, and suggested establishing a sandbox mechanism to validate the effectiveness and verifiability of AI models before large-scale application.