The US Securities and Exchange Commission (SEC) has received a proposal warning that quantum computers could break the encryption used by Bitcoin, Ethereum, and other digital assets.
The submission was made to the SEC’s Crypto Assets Task Force by Daniel Bruno Corvelo Costa. It calls for urgent steps to prepare digital infrastructure for a future where current cryptographic protections may no longer work.
The proposal is called the Post-Quantum Financial Infrastructure Framework (PQFIF). It outlines a plan to shift digital asset platforms toward quantum-resistant technology. The concern is that once quantum computers are strong enough, they could access private keys and unlock large amounts of crypto funds.
Data May Already Be at Risk
The document raises concerns about a method known as “Harvest Now, Decrypt Later.” This refers to storing encrypted data today with the aim of decoding it once quantum machines become powerful enough.
The risk is not just future-based. The data being collected now may already be targeted. According to the proposal, this approach could result in large-scale breaches if no changes are made before “Q-Day”—a term some use for the moment quantum computing breaks current encryption.
Roadmap for a Safer Crypto Environment
The PQFIF recommends a step-by-step path for moving toward quantum-safe encryption. The plan suggests starting with vulnerability checks on digital asset platforms and focusing early changes on high-risk areas like institutional wallets and exchanges.
The proposed framework also refers to cryptographic standards set by the National Institute of Standards and Technology (NIST) in 2024, including FIPS 203–205. These are designed to resist attacks from future quantum systems.
The proposal states:
“Establishing a quantum-resilient digital asset ecosystem is needed to secure investor assets and ensuring the long-term integrity of US capital markets.”
Bitcoin Developers Suggest Migration Plan
Earlier this year, a group of Bitcoin developers put forward a proposal to switch to new cryptographic tools that can handle quantum threats. The plan is called Post Quantum Migration and Legacy Signature Sunset.
Under this plan, users would be prevented from sending Bitcoin to older addresses that are vulnerable to quantum attacks. After about five years, those old addresses would be locked permanently, making their contents unspendable.
This effort is one of several early moves aimed at protecting digital assets before major breakthroughs in quantum computing arrive.
