Onome Amuge
The US Securities and Exchange Commission is reviewing a proposal designed to protect digital asset markets from the looming threat of quantum computing, amid growing concern that advances in the technology could undermine the cryptographic foundations of Bitcoin, Ethereum and other tokens.
The framework, titled the Post-Quantum Financial Infrastructure Framework (PQFIF), was submitted to the SEC’s Crypto Assets Task Force by Daniel Bruno Corvelo Costa. It sets out a roadmap for how the digital asset ecosystem could migrate to quantum-resistant cryptographic standards.
The submission warns that once so-called cryptographically relevant quantum computers (CRQCs) become viable, they could break the public-key encryption systems, such as ECDSA, that underpin the majority of digital assets. The risk, the paper argues, is not only theoretical. It points to the strategy known as Harvest Now, Decrypt Later, in which malicious actors collect encrypted data today with the expectation that quantum computing will one day make it readable.
“The cryptographic foundations of most digital assets are vulnerable to quantum attacks, posing a direct threat to market integrity, investor assets, and the operational stability of custodians and exchanges,” the framework states.
The PQFIF outlines both technical and regulatory steps to smooth a transition. Key pillars include an Automated Vulnerability Assessment process to map exposures across wallets, custody platforms and institutional infrastructure, and Risk-Based Migration Planning that prioritises the most sensitive systems, including custody services governed by SEC Staff Accounting Bulletin 121 and critical market infrastructure covered by Regulation SCI.
The SEC’s review of the document signals the extent to which US regulators are beginning to factor quantum security into their oversight of digital markets. While quantum computers capable of breaking today’s encryption do not yet exist, research progress has accelerated in recent years, prompting regulators, academics and industry leaders to consider defensive measures.
Similar urgency now characterises discussions about quantum preparedness in financial markets.
The SEC has not yet issued formal guidance on post-quantum standards, but its evaluation of the PQFIF could influence future rulemaking and encourage greater collaboration between regulators and private sector players. Observers say the move places the US among the early jurisdictions considering systemic defences for digital assets in the quantum era.
For the cryptocurrency industry, which has already faced regulatory uncertainty, high-profile collapses and persistent questions about stability, the prospect of quantum disruption represents a new existential challenge. A coordinated response, proponents argue, will be necessary to safeguard trillions of dollars of assets and maintain investor confidence.
