Crypto Long & Short: The GENIUS Act’s guarantees don’t cover DeFi lending

November 11, 2026 Francisco Rodrigues

Summary

Institutional investors entering the decentralized finance sector often focus heavily on identifying the safest lending markets. However, industry experts point out that fully backed stablecoins fail to protect against protocol changes or inaccurate price data. A more critical evaluation involves understanding how loan terms can be altered after funds are deployed.

Institutions weighing DeFi lending tend to ask which markets are safest. Mike Hathaway and Joseph Quintilian of Ajna argue the better question is who can change a loan’s terms after the money is lent, and why a fully backed stablecoin offers no protection against a token vote or a faulty price feed.

Source: Read the full story at CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data

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