A strategic plan to safeguard Bitcoin, Ether, and other virtual currencies from future quantum computing threats is being reviewed by the SEC’s Crypto Assets Task Force.
A proposal presented to the US Securities and Exchange Commission’s (SEC) Crypto Assets Task Force cautioned that the cryptographic foundations of Bitcoin, Ethereum, and the broader digital asset ecosystem could be shattered by quantum computing unless safeguards are implemented.
A written proposal, titled the Post-Quantum Financial Infrastructure Framework (PQFIF), was drafted by Daniel Bruno Corvelo Costa for the task force. He is among the many individuals and entities that have provided written input.
The framework outlines a blueprint for transitioning the cryptographic basis of digital assets, such as Bitcoin and Ether, to quantum-resistant standards. It also warns that trillions of dollars in digital assets could be exposed if today’s encryption methods succumb to quantum attacks.
A proposal released on Wednesday cautions that advancements in cryptographically relevant quantum computers (CRQC) “could compromise the core security that protects trillions of dollars in assets, resulting in widespread systemic risk, catastrophic investor losses, and a complete erosion of market confidence.”
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The submission highlights the “Harvest Now, Decrypt Later” threat, explaining that sensitive encrypted data is already being collected by adversaries to be unlocked once quantum breakthroughs emerge. This so-called ‘Harvest Now, Decrypt Later’ strategy is a rising concern in cybersecurity circles.
Crypto Security Moves to Preempt Quantum Threat
Proactive measures against the danger of quantum computing are urged by the proposal. It suggests automated security checks of digital asset platforms, the elevation of critical systems such as institutional wallets and exchanges, and a gradual shift using classical and post-quantum cryptography.
Importantly, the plan incorporates specifications that were completed by the National Institute of Standards and Technology (NIST) in 2024, including FIPS 203–205 and HQC for redundancy.
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A successful breach of current cryptography could result in massive investor losses, widespread operational disruption across custodial services and payment facilitators, and a collapse in market confidence. This systemic peril is considered a critical issue in the event of a sudden quantum advancement.
A warning is issued by experts that “Q-Day,” the point at which quantum machines can breach Bitcoin’s encryption, could be realized as early as 2028.
“The development of a quantum-secure digital asset environment is required to safeguard investor assets and ensure the long-term integrity of U.S. capital markets,” the proposal states.
Bitcoin Developers Propose Post-Quantum Protocol
A recent Bitcoin Improvement Proposal (BIP), titled “Post Quantum Migration and Legacy Signature Sunset,” was introduced by developers in July. It advocates for gradually sunsetting Bitcoin’s current signature schemes to adopt quantum-resistant alternatives.
The proposal described a gradual transition. Initially, funds would be blocked from being sent to legacy addresses that are susceptible to quantum attacks. Approximately five years later, it would freeze all Bitcoin stored in such addresses, making them unspendable.
In a recent commentary for , David Carvalho, the CEO of Naoris Protocol, asserted that the emergence of quantum computing presents the most significant peril to Bitcoin’s security yet, potentially capable of compromising its cryptographic safeguards within five years or less.
