The U.S. Securities and Exchange Commission’s crypto assets task force is reviewing a significant submission titled the Post-Quantum Financial Infrastructure Framework (PQFIF). Authored by Daniel Bruno Corvelo Costa, the proposal outlines a comprehensive strategy to safeguard digital assets like Bitcoin and Ether against the emerging threat posed by quantum computing.
The PQFIF warns that cryptographically relevant quantum computers (CRQCs) could eventually break current blockchain encryption, potentially exposing trillions of dollars’ worth of digital assets to theft or irreparable integrity breaches. The report spotlights the “Harvest Now, Decrypt Later” tactic, whereby attackers intercept and store encrypted data today, anticipating future decryption once quantum capabilities mature.
Structured, phased response
Some of the framework’s recommendations include automated vulnerability assessments of critical systems, especially institutional wallets and exchanges. It recommends a risk-based, phased migration to hybrid cryptography systems that combine classical and NIST-endorsed post-quantum algorithms (such as FIPS 203–205 and HQC). Clear regulatory oversight and auditing pathways to ensure transparent transitions without market disruption.
Quantum threat looms large
The proposal stresses that “Q-Day”, the point at which quantum breakthroughs could break Bitcoin’s encryption, may arrive by 2028, highlighting the urgency of proactive measures. Meanwhile, some Bitcoin developers have advanced a Bitcoin Improvement Proposal to phase out quantum-vulnerable signature schemes. It asks to block transactions to outdated addresses and eventually freeze them.
The PQFIF represents a crucial first step in building a quantum-resilient infrastructure, preserving investor protection, and safeguarding the integrity of U.S. digital asset markets.