Stakeholders urge US SEC to secure crypto with quantum-proof methods

Stakeholders are urging the SEC’s crypto arm to move quickly as quantum computing seriously threatens the security of Bitcoin, Ethereum, and trillions in digital assets.

The Post-Quantum Financial Infrastructure Framework (PQFIF) provides the SEC’s Crypto Assets Task Force with a clear roadmap to safeguard U.S. markets against emerging quantum risks. The framework warns that delays could undermine investor confidence, disrupt exchanges, and destabilize global financial systems.

SEC studies roadmap to defend crypto from quantum threats

The PQFIF is a long and detailed plan that urges the Crypto Assets Task Force by the SEC to set up control measures before it’s too late. The document was written by Daniel Bruno Corvelo Costa and supported by a broad working group of industry and technology experts. It shows how the security systems protecting most Bitcoin, Ethereum, and institutional wallets rely on cryptographic signatures designed ages ago.

The report warns that these old systems are at risk of obsolescence when cryptographically relevant quantum computers (CRQCs) arrive because attackers will take advantage of the sudden security failure. 

The submission stresses the “Harvest Now, Decrypt Later” threat, where advisories are already collecting encrypted financial data today, even though they can’t crack it yet. Once the quantum machines become powerful enough, all the stored data will be decrypted in one sweep.

Analysts call this day the “Q-Day,” and say it could arrive sooner than anyone expects. Some even suggest 2028 as the earliest date, while others push the risk to 2030. 

The PQFIF comes with a four-part roadmap strategy. The first part involves introducing automated tools that scan every bit of financial infrastructure to find cases of outdated cryptography still in use but often overlooked. 

The second part urges institutions to move their most critical and high-value systems first and schedule less sensitive ones for later phases. These vital systems include custody solutions and institutional wallets. For the third part, the report provides an easier method that allows classical and quantum-resistant algorithms to work side by side during the transition.

The final part puts pressure on the need for strong regulatory supervision. Auditing, compliance deadlines, and transparent reporting must be adhered to with strict consequences if broken to reduce any institutional delays.

Framework urges regulators and exchanges to switch to quantum-safe systems

The PQFIF states that institutions must start the migration early and build the processes on standards that regulators and industry already trust. Instead of providing experimental or untested methods, it refers to the National Institute of Standards and Technology finalized in 2024 and 2025. 

The roadmap also states that the migration should occur in phases rather than a single, sudden change. The first phase should focus on institutional wallets and custody systems that hold large amounts of Bitcoin, Ether, and other tokens for banks, hedge funds, and custodians.

The next phase should address high-value transactions like interbank settlements and major payment flows because weaknesses in these areas could cause widespread disruption. 

The last step handles older systems and data archives, because they still hold sensitive information that must remain safe for decades, even though the infrastructure isn’t used as often.

The crypto industry is already taking its own measures. Bitcoin developers introduced a new proposal called “Post Quantum Migration and Legacy Signature Sunset.” This proposal would do away with the current digital signature system and enforce using quantum-resistant alternatives. When the new rules are in place, users will not be able to send funds to older, unsafe addresses, and after many years, the addresses will be frozen completely. This means the funds in them will not be moved. 

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