Has Control Replaced Decentralization as DeFi's Legal Test? - DEX in the City

**Salman Banaei** (0:00)
The goal is to get a vote on cloture. This is the biggest hurdle, because you got to get 60 votes.
There are two Republican senators that seem to not support this bill, and one that is incapacitated. So that would require just doing the math. I think that's 10 Democratic senators to support. And we're really on the knife side as to whether we can get 10 And I think it's really going to depend on this ethics language that gets negotiated.

**Vy Le** (0:25)
KK is out this week, so I'm your host today, I'm going to be the GC of VEDA along with Jessi.

**SPEAKER_3** (0:30)
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**Vy Le** (0:50)
Okay, we're going to kick things off a little differently today by starting with a little bit of good news. Not decrypto-related, but.

**Jessi Brooks** (0:58)
Well, I first want to say you're doing a great job moderating. I think we're like without a sale, without KK here, so please just take this as you will. The good news is despite me pretty much sleeping at ORD last night, Chicago here and spending the entire freaking day in the airport, lots of stories to say about there. When I first arrived here, I'm in South Carolina, there were dolphins everywhere. It was like, get ready for DEX, sit on the porch, think about what you're going to talk about, and we're here to give you good luck. Growing up, my mom and I used to go watch dolphins every morning when we were at the beach, and so it's a very good memory.

**Vy Le** (1:40)
There's nothing I love more than a dolphin sighting, and sadly, my kids do not share in my enthusiasm.
But let's jump right into it. We're going to do another thing a little bit differently today, which is we, you know, Jessi usually does an AI segment, which I feel like we need to come up with a name for it.

**Jessi Brooks** (2:03)
Me too, me too.

**Vy Le** (2:04)
The best-used AI quarter.

**Jessi Brooks** (2:06)
Maybe AI can tell us what it should be called.

**Vy Le** (2:09)
Let's ask AI. But we're going to actually start things today with not just one AI topic, we actually have two AI topics that we're going to discuss, like, what happened this week or last week, and then also tie it back to crypto.
But Jessi, why don't you get us started by telling us what happened with OpenAI and Hugging Face, which was like the only thing on my timeline.

**Jessi Brooks** (2:37)
I'm actually going to start a little differently. But first, I do want to say that we do talk about it as an AI segment, but I was just on a different sort of panel talking about like advice to crypto GCs. And my first one was get out of the crypto bubble.
Like don't listen to every single social media post that's out there about rumors about what happened, about every statement from this regulator or this one, unless it's like something that, because so much happening outside of crypto that will affect crypto. So I'm not saying like go touch grass. I'm saying go think about the other technology and how the future of cyber security, regulatory AI is going to affect you. Because I think we're seeing as crypto matures that all markets are coalescing. And we've talked about this before on there. But obviously in a lot of ways, not all crypto, but a lot of crypto is merging or at least overlapping in some form of a diagram with TradFi. And the lines are becoming a lot more gray. And the same thing with AI too. So the story I actually want to start with on AI is one that is not an AI story. It's an everything story. And crypto in particular should be paying attention because everything I'm about to tell you sort of rhymes with what we've gone through, particularly the DeFi part of our industry.
So I want to start with the Chinese AI open model fight. Now, everyone's sort of talking about this, and you probably have heard bits about it. But I want to like narrow us in on why it's important for the audience here. And obviously it's salacious. There's a lot of interesting stuff and different teams and dynamics being developed. But it matters for crypto and for anyone who believes in open source and code, etc. And First Amendment and code. Because once a government decides that publishing weights associated with open source models is a controlled export rather than a protected publication, the theory is going to travel, like this isn't going to live in a silo in AI.