Bitcoin News Today: SEC Weighs Privacy and Quantum Risks as Crypto Future Hangs in Balance

The U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force has announced a public roundtable on financial surveillance and privacy, scheduled for October 17, from 1 p.m. to 4 p.m. at the SEC headquarters in Washington, D.C. The event follows a series of policy discussions under the “Spring Sprint Toward Crypto Clarity” initiative, the President’s Executive Order on Digital Assets, and the President’s Working Group on Digital Assets report. The roundtable aims to bring together experts in privacy-protecting technologies and discuss policy issues surrounding financial surveillance in the crypto space [1].

Commissioner Hester M. Peirce emphasized the importance of technologies that empower individuals to control when and with whom they share sensitive data, a critical step in safeguarding against bad actors. She noted that understanding recent developments in privacy tools will help the SEC and other financial regulators shape policy solutions in the crypto sector. The roundtable will feature panelists at the forefront of developing such tools and is intended to inform the SEC’s broader regulatory approach [1].

The event is open to the public, with in-person attendance requiring prior registration and security screening. The discussion will be streamed live on SEC.gov, with a recording made available at a later date. Agenda details and speaker information are expected to be published on the Crypto Task Force’s website in the coming weeks. Prior to the roundtable, Commissioner Peirce will participate in speaking engagements at DC Fintech Week and the DC Privacy Summit [1].

Separately, the SEC’s Crypto Assets Task Force is reviewing a proposal to secure digital assets against the future threat of quantum computing. The Post-Quantum Financial Infrastructure Framework (PQFIF), submitted by Daniel Bruno Corvelo Costa, outlines a roadmap to transition digital asset systems—such as those supporting Bitcoin and Ether—to quantum-resistant cryptographic standards. The submission warns that current encryption methods could be vulnerable to quantum attacks, potentially exposing trillions in digital assets and creating systemic financial risk [2].

The proposal highlights the “Harvest Now, Decrypt Later” strategy, in which adversaries may already be collecting encrypted data for future decryption once quantum computing advances become viable. It recommends automated vulnerability assessments, prioritization of high-risk systems, and a phased migration using both classical and post-quantum cryptographic methods. The framework incorporates standards developed by the National Institute of Standards and Technology (NIST) in 2024, including FIPS 203–205 and HQC as a backup mechanism [2].

In parallel, Bitcoin developers have proposed a Bitcoin Improvement Proposal (BIP) to phase out the network’s current signature schemes in favor of quantum-resistant alternatives. The plan includes a timeline to block transactions to vulnerable addresses within five years and eventually render such addresses unspendable. Analysts warn that a quantum breakthrough—often referred to as “Q-Day”—could occur as early as 2028, necessitating immediate planning and preparation [2].

The SEC’s engagement with both privacy and quantum threats underscores its dual mission to promote innovation in digital assets while safeguarding investor interests and market stability. These efforts align with broader U.S. regulatory and policy initiatives to maintain leadership in the fast-evolving financial technology landscape.

Source:

[1] SEC Crypto Task Force Host Roundtable on Financial Surveillance and Privacy (https://www.sec.gov/newsroom/press-releases/2025-114-sec-crypto-task-force-host-roundtable-financial-surveillance-privacy)

[2] SEC Crypto Task Force Quantum-Proof Digital Assets (https://cointelegraph.com/news/sec-crypto-task-force-quantum-proof-digital-assets)