US SEC’s crypto task force urged to quantum-proof digital assets

A proposal submitted to the US Securities and Exchange Commission’s (SEC) Crypto Assets Task Force warned that quantum computing could shatter the cryptographic foundations of Bitcoin, Ethereum, and the broader digital asset ecosystem unless safeguards are implemented.

A written submission to the task force titled the Post-Quantum Financial Infrastructure Framework (PQFIF), was authored by Daniel Bruno Corvelo Costa, one of many individuals and entities that have provided written input.

The framework outlines a roadmap for transitioning the cryptographic foundations of digital assets, such as Bitcoin (BTC) and Ether (ETH), to quantum-resistant standards. it warns that trillions of dollars in digital assets could be exposed if today’s encryption methods collapse under quantum attacks.

The proposal, issued on Wednesday, warns 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.”

The submission emphasizes the “Harvest Now, Decrypt Later” threat, where adversaries are already collecting sensitive encrypted data to unlock once quantum breakthroughs arrive. This so-called ‘Harvest Now, Decrypt Later’ strategy is a growing concern in cybersecurity circles.

Related: Quantum computers could bring lost Bitcoin back to life: Here’s how

Early crypto safeguards against threat of quantum

The proposal calls for early action against the threat of quantum computing. It recommends automated vulnerability assessments of digital asset platforms, prioritization of high-risk systems like institutional wallets and exchanges and a phased migration using classical and post-quantum cryptography.

Notably, the plan integrates standards finalized by the National Institute of Standards and Technology (NIST) in 2024, including FIPS 203–205 and HQC as a backup.

One urgent concern is the systemic risk of a sudden quantum breakthrough. A successful attack on existing cryptography could lead to massive investor losses, operational chaos across custodians and payment processors and a breakdown in market confidence.

Experts warn that “Q-Day,” when quantum machines can crack Bitcoin’s encryption, could arrive as early as 2028.

“Establishing a quantum-resilient digital asset ecosystem is needed to secure investor assets and ensuring the long-term integrity of US capital markets,” the proposal reads.

Related: El Salvador splits $678M Bitcoin across 14 wallets to reduce quantum risk

Bitcoin devs propose quantum-resistant upgrade

In July, developers proposed a new Bitcoin Improvement Proposal (BIP) titled “Post Quantum Migration and Legacy Signature Sunset,” which calls for phasing out Bitcoin’s current signature schemes in favor of quantum-resistant alternatives.

The proposal outlined a phased migration. Initially, it would block users from sending funds to older addresses vulnerable to quantum attacks. About five years later, it would freeze all Bitcoin stored in such addresses, making them unspendable.

In a recent opinion for Cointelegraph, David Carvalho, CEO of Naoris Protocol, said that the rise of quantum computing poses the most serious threat to Bitcoin’s security yet, potentially capable of breaking its cryptographic protections within five years or less.

Magazine: Bitcoin vs. the quantum computer threat — Timeline and solutions (2025–2035)

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