Stakeholders urge the SEC of the U.S. to protect cryptocurrencies with quantum-resistant methods.

SourceCryptopolitan

Sep 4, 2025 15:12

Various organizations are urgently pressuring the SEC's cryptocurrency division to act quickly, as quantum computing poses a serious threat to the security of Bitcoin, Ethereum, and digital assets valued in trillions.

The Post-Quantum Financial Infrastructure Framework (PQFIF) provides the SEC's Crypto Assets Working Group with a clear roadmap to protect U.S. markets against emerging quantum risks. The framework warns that any delay could undermine investor confidence, disrupt markets, and destabilize global financial systems.

The SEC is exploring strategies to defend cryptocurrencies against quantum threats.

The PQFIF is a comprehensive and detailed plan that urges the SEC Working Group to implement control measures before it is too late. The document, drafted by Daniel Bruno Corvelo Costa with the backing of technology and industry experts, reveals how the security systems that protect most Bitcoin, Ethereum, and institutional wallets rely on cryptographic signatures designed decades ago.

The report warns that these legacy systems are at risk of becoming obsolete when cryptographically relevant quantum computers (CRQCs) emerge, as attackers will exploit the sudden security failure.

The document emphasizes the threat “Collect Now, Decrypt Later,” where adversaries are already gathering encrypted financial data, although they cannot decrypt it yet. When quantum machines become powerful enough, all stored data will be decrypted at once.

Analysts are calling this moment “Day-Q,” and suggest it could arrive sooner than expected. Some point to 2028 as the earliest date, while others place the risk towards 2030.

The PQFIF presents a four-part strategy. The first involves introducing automated tools to scan financial infrastructures and detect obsolete cryptography. The second urges institutions to prioritize critical and high-value systems, such as custody solutions and institutional wallets. The third provides a method that allows for the coexistence of classical algorithms and quantum-resistant algorithms during the transition.

The final part emphasizes the need for strict regulatory oversight, with audits, compliance deadlines, and severe consequences to reduce institutional delays.

The framework urges regulators and platforms to switch to systems resistant to quantum technology.

The PQFIF states that institutions should begin the migration early, building processes based on already reliable standards. Instead of experimental methods, it refers to the standards from the National Institute of Standards and Technology finalized in 2024 and 2025.

The roadmap also states that the migration must occur in phases. The first phase should focus on institutional wallets and custody systems that hold large amounts of Bitcoin, Ether, and other tokens for banks, investment funds, and custodians.

The next phase must address high-value transactions such as interbank settlements and significant payment flows, as weaknesses in these areas could cause widespread disruptions.

The last step deals with legacy systems and data files, which contain sensitive information that must remain secure for decades.

The crypto industry is already taking its own measures. Bitcoin developers introduced a proposal called “Post-Quantum Migration and Sunset of Legacy Signatures.” This proposal would eliminate the current digital signature system and impose the use of alternatives resistant to quantum computing. With the new rules, users will not be able to send funds to old and insecure addresses, and after several years, these addresses will be completely frozen, preventing any movement of funds.

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