The clock is ticking on “Q-Day” – the day quantum computers could break the cryptography that protects Bitcoin, Ethereum, and trillions of dollars in crypto assets. The U.S. Securities and Exchange Commission’s (SEC) Crypto Asset Task Force is now reviewing a proposal to safeguard the market before it’s too late.
A Clear Warning for Regulators
The 74-page proposal, called the Post-Quantum Financial Infrastructure Framework (PQFIF), was submitted by Daniel Bruno Corvelo Costa. It lays out a plan to protect the U.S. digital asset ecosystem from quantum attacks.
“We believe that a structured approach is needed to neutralize the forward-looking threat of quantum computing, and we present this framework as a starting point for that critical work,” Costa wrote.
Experts warn that Q-Day could arrive as early as 2028. Hackers are already collecting encrypted data through a “Harvest Now, Decrypt Later” strategy, hoping to crack it once quantum machines are powerful enough.
This is something even crypto leaders like Vitalik Buterin have warned about.
Plan to Make Crypto Quantum-Proof
Costa’s roadmap recommends immediate action, including vulnerability checks across exchanges and custodians, securing high-risk wallets, and a phased shift to post-quantum cryptography. It builds on new encryption standards finalized by the National Institute of Standards and Technology (NIST) last year.
If ignored, Costa warns, a quantum breakthrough could trigger catastrophic losses and destroy market confidence – a serious concern as the U.S. explores building a national crypto reserve.
Bitcoin’s Weak Spot
Bitcoin relies on elliptic curve cryptography (ECDSA), which quantum computers could crack. This opens the door for dormant wallets, including Satoshi Nakamoto’s million-Bitcoin stash, to re-enter circulation. BlackRock even flagged the risk in its iShares Bitcoin Trust filing earlier this year, underlining how real the threat has become.
Developers are already taking steps. A July proposal suggests freezing older addresses vulnerable to quantum attacks within five years, a bold move to protect Bitcoin’s future.
Wintermute’s Call for Clarity
In a separate move, market maker Wintermute urged the SEC to confirm that network tokens should not be treated as securities. The firm argued that tokens essential to blockchain networks are closer to commodities, warning that misclassification could stifle innovation and push crypto activity overseas.
The SEC’s decisions over the coming months could determine whether the U.S. stays ahead or falls behind in a quantum-powered future.
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FAQs
Q-Day is when quantum computers could break current cryptography, threatening Bitcoin, Ethereum, and other digital assets.
The Post-Quantum Financial Infrastructure Framework aims to protect U.S. crypto from quantum attacks.
It recommends vulnerability checks, securing wallets, and transitioning to post-quantum cryptography.
The SEC is reviewing protections to safeguard markets and prevent quantum threats from destabilizing crypto.
