A submission to the US Securities and Exchange Commission’s (SEC) Crypto Assets Task Force has warned that quantum computing could compromise the cryptographic foundations of Bitcoin, Ethereum, and the wider digital asset ecosystem unless protective measures are implemented.
The proposal, titled the Post-Quantum Financial Infrastructure Framework (PQFIF), was authored by Daniel Bruno Corvelo Costa among other contributors providing input to the task force. It outlines a roadmap for transitioning digital assets to quantum-resistant cryptography and cautions that trillions of dollars in assets could be at risk if current encryption methods fail under quantum attacks.
Issued on Wednesday, the submission highlights that advancements in cryptographically relevant quantum computers (CRQC) “could break the fundamental security that protects trillions of dollars in assets, leading to systemic risk, catastrophic investor losses, and a complete erosion of market confidence.”
A key concern raised is the “Harvest Now, Decrypt Later” strategy, in which adversaries collect sensitive encrypted data now to decrypt once quantum breakthroughs occur—a growing threat in cybersecurity circles.
Early Crypto Safeguards Recommended
The proposal urges proactive measures, including automated vulnerability assessments of digital asset platforms, prioritization of high-risk systems like institutional wallets and exchanges, and a phased migration combining classical and post-quantum cryptography.
It also incorporates standards finalized by the National Institute of Standards and Technology (NIST) in 2024, including FIPS 203–205, with HQC included as a fallback option.
Experts warn that a sudden quantum breakthrough could trigger “Q-Day,” potentially as soon as 2028, which would jeopardize investor funds, disrupt custodians and payment processors, and undermine market confidence.
“Establishing a quantum-resilient digital asset ecosystem is essential to secure investor assets and ensure the long-term integrity of US capital markets,” the proposal states.
Bitcoin Developers Push for Quantum-Resistant Upgrade
In July, Bitcoin developers proposed a new Bitcoin Improvement Proposal (BIP) titled Post Quantum Migration and Legacy Signature Sunset. The plan calls for phasing out current signature schemes in favor of quantum-resistant alternatives.
The migration would begin by blocking transactions to older, vulnerable addresses and, approximately five years later, freezing all Bitcoin stored in such addresses, rendering them unspendable.
