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SEC crypto quantum safeguards proposed to protect Bitcoin, Ethereum, and trillions in assets from looming quantum computing risks.
Author: Akshat Thakur
September 4, 2025 — The U.S. Securities and Exchange Commission’s (SEC) Crypto Assets Task Force has been urged to adopt a roadmap for quantum-proofing Bitcoin, Ethereum, and other digital assets. A formal submission titled the Post-Quantum Financial Infrastructure Framework (PQFIF) warns that without immediate action, a quantum computing breakthrough could undermine the cryptographic foundations of the global digital economy.
The submission to the SEC’s Crypto Assets Task Force, authored by Daniel Bruno Corvelo Costa, outlines how cryptographically relevant quantum computers (CRQC) could render current encryption obsolete. Such a breakthrough would expose trillions in assets, spark systemic financial risks, and potentially erase market confidence.
The proposal highlights the “Harvest Now, Decrypt Later” threat, where attackers are already stockpiling encrypted data in anticipation of future quantum decryption capabilities.
The PQFIF proposal calls for immediate steps to quantum-proof digital assets. Recommendations include:
The framework incorporates standards finalized by the National Institute of Standards and Technology (NIST) in 2024, including FIPS 203–205 and HQC as a fallback.
One of the most urgent warnings is the possibility of a sudden “Q-Day,” when quantum machines gain the ability to break existing encryption. Experts estimate this could arrive as early as 2028.
Such an event would not only compromise Bitcoin and Ethereum but also cause chaos across custodians, exchanges, and payment processors. The result could be catastrophic investor losses and a collapse of trust in capital markets.
Developers are already working on quantum-resistant upgrades. In July, Bitcoin developers submitted a new BIP, “Post Quantum Migration and Legacy Signature Sunset,” proposing a phased migration to secure signature schemes.
The plan would first block new transactions to vulnerable addresses, then freeze older addresses after five years, making them unspendable. This aggressive timeline reflects growing urgency within the Bitcoin community.
Industry experts, including Naoris Protocol CEO David Carvalho, have warned that quantum computing poses the most severe security threat yet to Bitcoin and could break its protections within five years.
Quantum risk is unique because it grows silently. Even if breakthroughs are years away, attackers may already be harvesting encrypted financial data for future exploitation. Unlike traditional hacks, a quantum decryption event could simultaneously compromise billions in assets, triggering widespread contagion.
SEC reviews and developer upgrades aim to keep U.S. markets and global crypto resilient in a post-quantum era.
The push for SEC crypto quantum safeguards underscores the urgency of preparing digital assets for the quantum age. With warnings of a potential breakthrough as early as 2028, regulators, developers, and institutions face growing pressure to accelerate quantum-proofing before systemic risks materialize.
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