Quantum computing forces SEC to confront crypto's looming security crisis

The U.S. Securities and Exchange Commission (SEC) has been increasingly called upon to address the potential risks posed by quantum computing to the security of digital assets. As the technology advances, the agency faces growing pressure to ensure that the infrastructure supporting cryptocurrencies and blockchain systems is prepared for quantum threats. This comes amid growing concerns from industry experts and developers about the vulnerability of cryptographic algorithms currently in use.

Quantum computing, with its ability to perform complex calculations exponentially faster than classical computers, presents a significant risk to existing cryptographic standards such as RSA and elliptic curve cryptography (ECC), which underpin the security of most blockchain networks. Algorithms like Shor’s, which can break these cryptographic systems, could enable quantum computers to derive private keys from public keys, thereby compromising the integrity of digital wallets and transactions. A Capgemini report estimates that up to 25% of Bitcoin could be at risk if quantum computing capabilities continue to advance at their current pace. The threat is not limited to Bitcoin—virtually all cryptocurrencies utilizing classical cryptographic methods face similar vulnerabilities.

The urgency of the situation has prompted both public and private sector actors to accelerate research and development in post-quantum cryptography (PQC). PQC algorithms are designed to resist quantum attacks and are seen as a critical step toward securing blockchain infrastructure for the future. According to a Capgemini study, 70% of large organizations are preparing for the transition to PQC, although only a small fraction of cybersecurity budgets are currently allocated to this effort. The migration to quantum-resistant protocols is already underway in certain blockchain projects, with developers and financial institutions working to integrate these new algorithms into wallets and consensus mechanisms.

The SEC’s role in this transition has been a topic of discussion among industry stakeholders, particularly as the agency’s enforcement actions often focus on market integrity and investor protection. While the SEC has not yet issued a formal regulatory framework specifically addressing quantum threats, there are growing calls for the agency’s crypto task force to proactively engage with experts in quantum computing and cryptography. This includes developing standards for quantum-resistant security practices and encouraging the adoption of PQC in digital asset infrastructure.

For investors and users, the immediate steps involve staying informed and adopting best practices to mitigate quantum risks. These include avoiding the reuse of wallet addresses, monitoring developments in quantum-resistant technologies, and using hardware wallets that support upgradable firmware. As quantum computing continues to evolve, the need for forward-looking strategies in digital asset management becomes more pressing.

Source: [1] Meet Quantum Computing's Potential Monster Stocks of the ... (https://www.fool.com/investing/2025/09/02/meet-quantum-computings-monster-stocks-of-the-next/) [2] Crypto And Quantum Computing – Is it a Threat? (https://onekey.so/blog/ecosystem/crypto-and-quantum-computing-is-it-a-threat/) [3] Here is The Crypto To Buy As Vitalik Buterin Warns ... (https://www.mitrade.com/insights/news/live-news/article-3-1086109-20250902)