Could a Quantum Computer Break Bitcoin? The SEC has Now Taken the Threat Seriously

The U.S. Securities and Exchange Commission’s (SEC) Crypto Assets Task Force is now formally to safeguard the entire digital asset market from the growing threat of quantum computing.

The framework warns that trillions of dollars in assets like Bitcoin and Ethereum are at risk from a future quantum attack, a day that some experts believe could arrive as early as 2028.

Post-Quantum Financial Infrastructure Framework (PQFIF)

“Q-Day” is the hypothetical day when a cryptographically relevant quantum computer (CRQC) becomes powerful enough to break the encryption standards that secure blockchains like Bitcoin and Ethereum. Some forecasts predict this could happen as early as 2028.

The framework also highlights an immediate threat: adversaries who are collecting and storing encrypted blockchain data today with the expectation that they will be able to decrypt it once they have a powerful enough quantum computer in the future.

The PQFIF document recommends a phased, coordinated transition to quantum-resistant cryptography, a move that is already being explored by some of the biggest projects in the space.

The strategy calls for a that combines classical and post-quantum encryption methods, referencing new standards already issued by the National Institute of Standards and Technology (NIST). It also calls for regulatory involvement to coordinate the migration.

Bitcoin developers are already working on the problem. A Bitcoin Improvement Proposal (BIP) called “Post Quantum Migration and Legacy Signature Sunset” has been introduced, which calls for blocking and eventually freezing funds in addresses that are vulnerable to quantum attacks.

This regulatory push in the U.S. is happening as the global race to build powerful quantum computers intensifies.

China’s Zuchongzhi 3.0 quantum processor has reportedly achieved speeds a quadrillion times faster than the world’s top supercomputers. This highlights the fierce international competition and adds urgency to the need for defensive measures in the crypto industry.