Experts urge the SEC of America to protect cryptocurrencies with quantum-proof methods.

Experts are urging the SEC's cryptoassets department to act swiftly, as quantum computing poses a serious threat to the security of Bitcoin, Ethereum, and trillions in digital assets.

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

The SEC is analyzing a strategy to defend cryptocurrencies from quantum threats

The PQFIF is a comprehensive and detailed plan that urges the SEC's Cryptoassets Working Group to establish control measures before it's too late. The document, drafted by Daniel Bruno Corvelo Costa and backed by a broad group of industry and technology experts, reveals how the security systems that protect most Bitcoin, Ethereum, and institutional wallets rely on cryptographic signatures designed a long time ago.

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

The presentation emphasizes the threat “Collect now, decrypt later”, where adversaries are already gathering encrypted financial data at present, even though they cannot yet decrypt it. Once quantum machines are powerful enough, all stored data will be decrypted in one go.

Analysts refer to this day as “Day Q” and claim it could arrive sooner than expected. Some even suggest 2028 as the earliest date, while others extend the risk to 2030.

The PQFIF presents a four-part roadmap strategy. The first involves the introduction of automated tools that scan every bit of the financial infrastructure to find cases of obsolete cryptoassets still in use but often overlooked.

The second part urges institutions to first move their most critical and high-value systems, scheduling the less sensitive ones for later phases. These vital systems include custody solutions and institutional wallets. For the third part, the report provides a simpler method that allows classical and quantum-resistant algorithms to operate in parallel during the transition.

The final part emphasizes the need for strong regulatory oversight. Audits, compliance deadlines, and transparent reporting must be met with strict consequences if they are not fulfilled to reduce any institutional delays.

The framework urges regulators and exchanges to switch to quantum-safe systems

The PQFIF states that institutions must begin the migration early and build processes based on standards that regulators and the industry already trust. Instead of providing experimental or untested methods, it refers to the National Institute of Standards and Technology finalized in 2024 and 2025.

The roadmap also indicates that the migration should occur in phases rather than a single sudden change. The first phase should focus on institutional wallets and custody systems that hold large amounts of Bitcoin, Ether, and other tokens for banks, hedge funds, and custodians.

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

The last step handles older systems and data files, as they still contain sensitive information that must remain secure for decades, even if the infrastructure is not used as frequently.

The cryptocurrency industry is already taking its own measures. The developers of Bitcoin introduced a new proposal called “Post-Quantum Migration and Legacy Signature Obsolescence.” This proposal would eliminate the current digital signature system and require the use of quantum-resistant alternatives. When the new rules come into effect, users will not be able to send funds to old and insecure addresses, and after many years, the addresses will be completely frozen. This means that the funds in them will not be able to be moved.