Lighter CEO Vladimir Novakovski said at the first meeting of the U.S. Commodity Futures Trading Commission’s Innovation Advisory Committee that decentralized finance has long been misunderstood and should not be treated as being at odds with regulators. He said DeFi transactions are recorded on on-chain ledgers in a verifiable way, which can help regulators with transparency, consumer protection, and market fairness.
Novakovski also said decentralized, verifiable finance could become an important part of future U.S. financial infrastructure, especially in cybersecurity and operational resilience. In his view, the industry should push more technology toward open-source, verifiable stacks.
On artificial intelligence, he said AI could help democratize finance by allowing users to build bundled trading or investment strategies based on their own views on macroeconomics and specific industries. He noted that such capabilities were previously aimed mainly at high-net-worth individuals and professional money managers.
At the same time, he identified consumer protection as the main risk for AI in finance, including cases where users do not understand what an AI model actually does or where its capabilities are marketed in a misleading way. Before AI models are rolled out to consumers at scale, he said, sandbox mechanisms should be put in place and models should be tested for effectiveness and formal verifiability.
Lighter CEO Vladimir Novakovski said at the first meeting of the U.S. Commodity Futures Trading Commission’s Innovation Advisory Committee that DeFi has long been misunderstood and should not be seen as a regulatory adversary.
He said DeFi transactions are recorded on on-chain ledgers in a verifiable manner, giving regulators tools that can support work on transparency, consumer protection, and market fairness.
Novakovski said decentralized and verifiable finance could become an important part of future U.S. financial infrastructure, particularly in cybersecurity and operational resilience. He added that the industry should move more of its technology toward open-source and verifiable tech stacks.
On AI, Novakovski said the technology has the potential to democratize finance. Users, he said, can use AI to build bundled trading or investment strategies based on their own views of macroeconomics and industry trends. He noted that this kind of capability has historically been available mainly to high-net-worth individuals and professional asset managers.
He also said the main risk facing AI in finance is consumer protection, such as cases where users do not understand what an AI model actually does, or where a model’s capabilities are presented in a misleading way. Before AI models are deployed to consumers at scale, he said, appropriate sandbox mechanisms should be established and models should be tested for effectiveness and formal verifiability.
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