SEC Warns of Quantum Threat to Finance as BTQ CEO Sounds Alarm on Crypto Security

The Securities and Exchange Commission just issued a stark warning: quantum computers could upend the cryptographic foundations of global finance, threatening trillions of dollars in assets unless urgent steps are taken to build quantum-safe infrastructure. The warning comes just days after Olivier François Roussy Newton, founder and CEO of BTQ Technologies Corporation , said that cryptocurrencies such as Bitcoin and Ethereum could face “a day of reckoning” as their encryption becomes vulnerable.

In a September 3 report titled Post-Quantum Financial Infrastructure Framework (PQFIF), the SEC’s U.S. Crypto Assets Task Force described quantum computing as an “existential threat” to the security of digital assets. The framework outlines a roadmap for migrating the financial system to post-quantum cryptography, calling for automation, risk-based prioritization, and hybrid cryptographic solutions to ensure continuity of market operations.

“This proposal represents a synthesis of current best practices, regulatory guidance, and technological capabilities for a quantum-safe financial infrastructure,” the paper said. “Implementation success depends on early action, comprehensive planning, and sustained executive commitment to necessary changes.”

A Looming Security Crisis

The SEC’s report warned that malicious actors may already be preparing for what regulators call a “Harvest Now, Decrypt Later” strategy, in which encrypted financial data is stockpiled for future decryption by quantum computers.

Olivier François Roussy Newton, CEO of BTQ Technologies, said the risk is not confined to the future. “North Koreans are definitely indexing everything online possible in terms of wallet addresses, keys, exchange wallets, cold wallets, so that when potentially they have access to a quantum computer, quantum software, they can hack or socially engineer everything that's being exposed publicly as of now,” Newton said in an interview with AInvest.

That warning underscores the SEC’s concern that the arrival of cryptographically relevant quantum computers could trigger systemic risk across markets, from payments and custody systems to blockchain-based assets. “A cryptographically relevant quantum computer (CRQC) could break the fundamental security that protects trillions of dollars in assets, leading to systemic risk, catastrophic investor losses, and a complete erosion of market confidence,” the SEC report said.

BTQ’s Olivier Newton: Bitcoin Faces “Day of Reckoning”

Newton, whose Vancouver-based BTQ Technologies has spent over a decade developing post-quantum cryptographic solutions, said the speculative value of Bitcoin rests on encryption standards that quantum computers may soon undermine. “Bitcoin's value proposition is digital gold, something you can potentially pass on to your kids and their grandchildren. And no one has a goddamn clue on, number one, China's quantum initiatives and timeline,” he said in the interview. “The underlying encryption mechanisms… can be compromised in the span of the next one to two, three years.”

“People are going to be in for kind of a day of reckoning when the speculative narrative… flips and the underlying security premise of this whole cryptographic… market asset class gets destroyed,” Newton added.

Regulatory Pressure Mounts

The SEC's PQFIF framework calls for phased migration to quantum-safe algorithms standardized by the National Institute of Standards and Technology, including ML-KEM for key exchange and ML-DSA for digital signatures. It also emphasizes compliance with mandates such as National Security Memorandum 10, which requires U.S. federal agencies to complete migration by 2035.

By building regulatory expectations directly into the framework, the SEC aims to avoid a chaotic transition. “The framework provides a structured methodology for assessing vulnerabilities, planning a risk-based migration, and implementing NIST-standardized cryptographic solutions without disrupting market operations,” the document stated.

Newton welcomed the SEC’s recognition of the issue but criticized the pace of industry readiness. “Global regulators… [are] allowing retail and institutions to buy ETFs that aren’t secure from a security perspective,” he said. “All digital assets are fucked. The traditional financial system is completely screwed, excuse my language, and I think it requires a bit of a sense of urgency."

Quantum-Resilient Future or Market Breakdown?

The SEC framework portrays post-quantum cryptography as a necessary safeguard for financial stability and innovation. It suggests that adopting the PQFIF could enhance global interoperability, reduce systemic risk, and create a foundation for new financial services. “Establishing a quantum-resilient digital asset ecosystem is needed to secure investor assets and ensure the long-term integrity of U.S. capital markets,” the report said.

For Newton, however, the clock is ticking faster. “Quantum computing… will burn potentially Bitcoin and other blockchains to the ground,” he warned. "People are going to be in for kind of a day of reckoning when the speculative narrative… flips and the underlying security premise of this whole cryptographic… market asset class gets destroyed...But from that… we will develop much more sophisticated quantum-based digital assets that will have long lasting value and implications," he said.

Conclusion

Both regulators and industry leaders now acknowledge that quantum computers could redraw the map of global finance. The SEC’s PQFIF lays out a methodical path to quantum resilience, while BTQ’s Newton warns that the risks may materialize within just a few years.