Bitcoin News Today: Quantum Time Bomb: SEC and Crypto Firms Race to Save Digital Wealth

The U.S. Securities and Exchange Commission (SEC) has been actively considering measures to safeguard digital assets from the looming threat posed by quantum computing. The Crypto Assets Task Force has received a proposal titled the Post-Quantum Financial Infrastructure Framework (PQFIF), authored by Daniel Bruno Corvelo Costa. This framework outlines a strategic roadmap for transitioning the cryptographic foundations of digital assets such as Bitcoin (BTC) and Ether (ETH) to quantum-resistant standards [1].

The PQFIF emphasizes the urgent need for action against the quantum computing threat, given that advancements in cryptographically relevant quantum computers (CRQC) could potentially break the fundamental security of digital assets, leading to systemic risks and catastrophic investor losses. The framework warns that adversaries may be employing a “Harvest Now, Decrypt Later” strategy, collecting encrypted data now to exploit it once quantum computing capabilities mature. This scenario highlights the growing concern within cybersecurity circles about the vulnerabilities of current cryptographic methods [2].

To mitigate these risks, the proposal recommends a series of proactive measures. These include automated vulnerability assessments of digital asset platforms, prioritization of high-risk systems such as institutional wallets and exchanges, and a phased migration using classical and post-quantum cryptography. The plan incorporates standards finalized by the National Institute of Standards and Technology (NIST) in 2024, including FIPS 203–205 and HQC as a backup. Such measures aim to ensure that the transition to quantum-resistant cryptography is both systematic and secure [3].

Experts in the field have voiced concerns about the potential timeline for a quantum computing breakthrough that could compromise Bitcoin’s encryption. Some forecasts suggest that “Q-Day,” when quantum machines can crack Bitcoin’s encryption, might arrive as early as 2028. In response to these concerns, Bitcoin developers recently proposed a Bitcoin Improvement Proposal (BIP) titled “Post Quantum Migration and Legacy Signature Sunset.” This proposal outlines a phased migration strategy, starting with blocking the use of older addresses vulnerable to quantum attacks and culminating in the freezing of all Bitcoin stored in such addresses after about five years [4].

The urgency surrounding quantum threats has also prompted global technological advancements, exemplified by developments in China’s quantum computing sector. Notably, China’s Zuchongzhi 3.0 quantum processor has emerged as a significant technological advancement, with speeds reported to be 1 quadrillion times faster than the world's leading supercomputers. This development underscores the competitive nature of the global quantum computing race and highlights the potential for rapid advancements that could outpace current cryptographic defenses [5].

The integration of quantum-resistant measures into digital asset infrastructure is not only a technical challenge but also a regulatory one. The SEC’s Division of Trading and Markets has been coordinating efforts with the Commodity Futures Trading Commission (CFTC) to facilitate the trading of certain spot crypto asset products on registered exchanges. This initiative, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, reflects a broader effort to support innovation in digital asset markets while ensuring regulatory compliance [3].

As the SEC continues to evaluate the proposals and recommendations submitted to its Crypto Task Force, the focus remains on balancing innovation with investor protection. The transition to quantum-resistant cryptography is expected to require collaboration across multiple jurisdictions and regulatory bodies, ensuring that the legal and technical frameworks evolve in tandem to secure the future of digital assets [1].

Source:

[1] Crypto Task Force Written Input (https://www.sec.gov/about/crypto-task-force/crypto-task-force-written-input)

[2] SEC Reviews Quantum-Safe Roadmap for Digital Assets (https://cointelegraph.com/news/sec-crypto-task-force-quantum-proof-digital-assets)

[3] SEC and CFTC Staff Issue Joint Statement on Trading ... (https://www.sec.gov/newsroom/press-releases/2025-110-sec-cftc-staff-issue-joint-statement-trading-certain-spot-crypto-asset-products)

[4] "China's Quantum Computer Breaks Reality": Zuchongzhi ... (https://www.rudebaguette.com/en/2025/09/chinas-quantum-computer-breaks-reality-zuchongzhi-3-0-runs-1-quadrillion-times-faster-than-americas-best-supercomputers-today/)