Even with the GENIUS Act in effect, DeFi lending liquidation risks remain
Original headline지니어스법 시행돼도 디파이 대출 청산 위험은 남는다
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The GENIUS Act’s stablecoin reserve rules do not eliminate liquidation and contract-risk exposures in DeFi lending, according to Ajna co-founders Mike Hathaway and Joseph Quintilian in a CoinDesk op-ed. They argue that an issuer’s ability to redeem stablecoins is separate from the safety of loan contracts, and that the key question is who can change borrowing terms after capital is deployed. The warning comes as the U.S. Federal Reserve moves toward implementing the GENIUS Act framework. Institutions evaluating DeFi credit markets should therefore check governance and oracle controls, not just stablecoin backing. Next, watch how DeFi protocols document upgrade and parameter-change authority as regulated stablecoin issuance expands.
Muhabbit's AI wrote this summary in its own words from TokenPost's report and translated it from Korean. It can get details wrong, so check the source.
Named in this story
GENIUS Act, Ajna, Mike Hathaway, Joseph Quintilian, CoinDesk