- PQFIF warns quantum computing could break Bitcoin, Ethereum, and other networks’ cryptography, risking trillions in assets.
- The proposal notes the “Harvest Now, Decrypt Later” threat, with adversaries storing encrypted data for future quantum attacks.
- Analyst Merlijn The Trader points to Algorand and Hedera as early adopters of quantum ready security and institutional partnerships.
A proposal submitted to the SEC Crypto Assets Task Force has warned that the rise of quantum computing could compromise the security of the global digital asset ecosystem. The document, titled the Post-Quantum Financial Infrastructure Framework (PQFIF), stressed that advancements in cryptographically relevant quantum computers (CRQC) could break existing encryption standards protecting trillions of dollars in assets.
The framework indicated the urgent need for migration to quantum-resistant systems to prevent catastrophic investor losses and a collapse of market confidence.
SEC Task Force Outlines Growing Quantum Threat
The PQFIF was authored by Daniel Bruno Corvelo Costa and submitted as written input to the SEC task force. It described how current cryptographic defenses securing Bitcoin, Ethereum, and other networks may fail against powerful quantum machines.
The submission emphasized that “Q-Day,” the point at which quantum computers can crack Bitcoin’s encryption, could arrive as early as 2028. The proposal identified one immediate concern: the “Harvest Now, Decrypt Later” strategy.
In this approach, adversaries collect encrypted data today with the intention of decrypting it once quantum breakthroughs become available. According to the submission, this threat has already become a growing focus in cybersecurity circles.
Recommendations for a Quantum-Resilient Framework
To address these risks, the framework recommended several urgent measures. These included automated vulnerability assessments across digital asset platforms and prioritization of high-risk systems such as custodial wallets and exchanges.
Furthermore, it proposed a phased transition combining classical and post-quantum cryptography. The roadmap also integrated standards recently finalized by the National Institute of Standards and Technology (NIST) in 2024.
Among these were FIPS 203–205 as well as HQC, which was suggested as a backup solution. These steps, the framework argued, would be essential for building resilience into financial infrastructure before large-scale quantum adoption.
Analysts Says Blockchains are Preparing Early
Analysts have already noted that some networks have taken early steps to prepare for post-quantum environments. Market analyst Merlijn The Trader pointed to Algorand (ALGO) and Hedera (HBAR) as examples.
According to him, both chains have focused on quantum-ready consensus models and years of research into state proofs and security. He added that these networks have engaged with institutions prioritizing resilience in long term infrastructure.
Such institutional partnerships, he noted, reflect how segments of the financial industry are planning beyond present cryptographic standards. His comments underline that when the quantum risk becomes mainstream, networks with these preparations may hold a structural advantage.
