SEC Task Force Reviews Quantum Computing Risks to Digital Assets

Highlights:

• A proposal to the SEC warns that quantum computing could break crypto security and cause major market losses.
• The quantum computing risks highlight the urgent need for new ways to secure digital wallets and exchanges.
• Bitcoin and Ethereum developers plan quantum-resistant upgrades to protect investor assets before 2028.

A proposal to the US Securities and Exchange Commission’s Crypto Assets Task Force has generated a new wave of concerns over the safekeeping of digital assets. According to Daniel Bruno Corvelo Costa’s Post-Quantum Financial Infrastructure Framework, the cryptographic mechanisms that safeguard cryptocurrencies like Bitcoin and Ethereum would be compromised by quantum computing.

Advertisement

A framework was submitted to the SEC’s Crypto Assets Task Force to make digital assets quantum-safe. pic.twitter.com/HjONnlRcDV

— Chainewz (@Chainewz) September 4, 2025

The proposal claimed that the risk to trillions of dollars in digital assets is imminent if current encryption methods fail. It stated that such a collapse could lead to financial instability, steep losses to investors, and general loss of confidence in digital markets. Costa called for immediate protection measures to avoid the collapse of systems.

The Corvelo submission also outlined the “Harvest Now, Decrypt Later” strategy. In this approach, attackers collect encrypted data today, intending to decrypt it once quantum advances make that possible. Cybersecurity experts already warn that this tactic threatens sensitive financial data and could affect the stability of global digital markets.

To combat the danger, the framework recommended some actionable measures. It suggested automated checks of digital asset platforms to identify weak points. It also suggested that a lot of emphasis should be placed on high-risk systems like institutional wallets and large exchanges. Furthermore, it recommended a progressive transition from the existing protections to quantum-resistant cryptography.

Quantum Computing Risks Emerge as Urgent Concern

The concept foresaw the arrival of quantum computers of cryptographic relevance as early as 2028. Such a breakthrough could allow attackers to crack Bitcoin’s protections, disrupt exchanges, and drain investor funds before defenses are ready.

Costa emphasized the need to act immediately. “Establishing a quantum-resilient digital asset ecosystem is needed to secure investor assets and ensure the long-term integrity of US capital markets,” the proposal stated.

The framework also advised adopting new cryptographic standards created by the National Institute of Standards and Technology in 2024. The plan recommended a phased strategy, beginning with vulnerability assessments, followed by restricting transactions involving weak addresses.

In a closely related development, Wintermute Trading, a digital asset market maker, called for clarity in rules relating to tokenized securities. The company sought advice on wallet management, stablecoin settlement, and account-based trading. It also asked that decentralized finance activity linked to tokenized securities not fall under broker-dealer rules.

3. We also ask for clarification on the jurisdiction of the SEC

We request that the SEC clarify that network tokens are not securities, which make up most of the market for crypto assets, as it has done for other types of crypto assets

In addition, we seek clarification to…

— Wintermute (@wintermute_t) September 3, 2025

The market maker further urged the SEC to confirm that Bitcoin, Ethereum, Solana, and XRP should not be considered securities. The firm explained that such clarity would help tokenization efforts grow across equities, funds, and other asset classes. It also noted that the global market for real-world asset tokenization is nearing $28 billion.

Bitcoin and Ethereum Prepare Post-Quantum Roadmaps

Developers of Bitcoin and Ethereum have already started working on defenses against quantum threats. A proposal for a post-quantum migration and sunset of the legacy signature was submitted by Bitcoin developers in July. It called for blocking transactions to addresses exposed to quantum risks. Within five years, funds in such addresses would be permanently frozen.

Ethereum’s developers are also advancing post-quantum protections. The network is preparing tests of lattice-based and hash-based algorithms that resist quantum decryption. The pilot will happen shortly after it retires the Holesky testnet in November.

Advertisement