Wouldn't the same thing happen to Jafar if Jafar was freed?
Yes. The same thing would happen to Jafar if Abis Mal did free him but, as seen, Abis Mal never wished for Jafar to be free. Jafar was still a genie because he still had the bands attached to his wrist.
Answer: The Genie says his powers were diminished after Aladdin freed him.
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Wouldn't the same thing happen to Jafar if Jafar was freed?
Yes. The same thing would happen to Jafar if Abis Mal did free him but, as seen, Abis Mal never wished for Jafar to be free. Jafar was still a genie because he still had the bands attached to his wrist.