Bitcoin News Today: SEC Prepares for Quantum-Computing Threat to Crypto Security

The U.S. Securities and Exchange Commission’s (SEC) Crypto Assets Task Force is currently reviewing a proposal aimed at safeguarding digital assets like Bitcoin (BTC) and Ether (ETH) from the potential risks posed by the advent of quantum computing. The submission, titled the Post-Quantum Financial Infrastructure Framework (PQFIF), was authored by Daniel Bruno Corvelo Costa and highlights the need for a proactive strategy to protect the digital asset ecosystem from quantum threats [1].

The framework outlines a detailed roadmap for transitioning the cryptographic infrastructure of digital assets to quantum-resistant standards. It warns that current encryption methods may become obsolete as quantum computing advances, potentially exposing trillions of dollars in digital assets to systemic risk and catastrophic investor losses. The proposal underscores the urgency of implementing these safeguards, emphasizing that a successful quantum computing breakthrough could undermine the foundational security of digital assets [1].

A key component of the proposal is its focus on mitigating the “Harvest Now, Decrypt Later” threat. This cybersecurity concern involves adversaries collecting encrypted data now, intending to decrypt it in the future once quantum computing capabilities mature. The framework calls for automated vulnerability assessments and prioritized actions for high-risk systems, such as institutional wallets and exchanges, to preemptively address potential weaknesses [1].

The proposal also incorporates standards developed by the National Institute of Standards and Technology (NIST), including FIPS 203–205 and HQC, as part of a phased migration strategy. These standards are expected to play a crucial role in transitioning from classical to post-quantum cryptography. The plan also includes a backup strategy to ensure continuity in the event of unforeseen developments in quantum computing [1].

In parallel, Bitcoin developers have also taken steps to address the quantum threat. A new Bitcoin Improvement Proposal (BIP), titled “Post Quantum Migration and Legacy Signature Sunset,” was introduced in July. The proposal outlines a phased migration plan that would first block transactions to quantum-vulnerable addresses and later render these addresses unusable after five years. This initiative aligns with the broader industry push to future-proof digital assets [1].

Experts have expressed concern that the so-called “Q-Day,” when quantum computers could crack Bitcoin’s encryption, might arrive as soon as 2028. David Carvalho, CEO of Naoris Protocol, has emphasized that quantum computing could represent the most significant threat to Bitcoin’s security in its history, with the potential to break its cryptographic protections within five years or less [1].

Given these developments, the SEC’s consideration of the PQFIF framework represents a critical step in ensuring the resilience of the digital asset market. Establishing a quantum-resistant infrastructure is seen as essential for maintaining investor confidence and safeguarding the integrity of U.S. capital markets in the face of emerging technological threats.

Source: [1] SEC Reviews Quantum-Safe Roadmap for Digital Assets (https://cointelegraph.com/news/sec-crypto-task-force-quantum-proof-digital-assets)