SEC Pushes Forward Quantum-Safe Encryption Standards to Prevent 2028 Disaster

The Crypto Task Force of the U.S. Securities and Exchange Commission (SEC), under the leadership of Commissioner Hester Peirce, is moving forward with a plan for regulated tokenization by working closely with industry participants and creating a detailed regulatory framework. The task force has launched a countrywide initiative, traveling to cities like Berkeley, Boston, Dallas, and New York to collect feedback from smaller crypto ventures and voices that are often overlooked. These sessions are designed to make sure regulatory policies reflect the varied needs of the sector and help reduce systemic risks title1 [ 1 ].

One of the main priorities for the task force is guiding digital assets toward quantum-safe standards. The SEC has received a proposal called the Post-Quantum Financial Infrastructure Framework (PQFIF), which highlights the risk that quantum computing advancements could undermine the cryptographic security of

and . The proposal recommends a gradual shift to post-quantum cryptographic methods, using standards set by the National Institute of Standards and Technology (NIST). Specialists warn that a so-called “Q-Day”—when quantum computers break current encryption—could happen as soon as 2028, making it critical to act now to safeguard digital assets worth trillions title2 [ 2 ].

The SEC is also broadening its regulatory focus to include tokenized securities. In a statement from July 2025, the agency reiterated that tokenized assets are still governed by federal securities regulations, even if they are built on blockchain technology. The SEC encourages market players to seek guidance when developing tokenization solutions, especially those involving asset custody or derivatives. The task force has provided avenues for engagement, such as submitting written feedback and holding meetings, to help shape rules for clearing agencies, transfer agents, and specialized broker-dealers.

Recent policy changes under both the Biden and Trump administrations have influenced the SEC’s direction. With Paul Atkins now serving as SEC chair, the agency has adopted a more assertive regulatory approach. The task force is considering temporary exemptions for coin and token sales and revising custody regulations to give clearer direction to the market. These initiatives respond to industry calls for well-defined rules that support both innovation and investor safety title3 [ 3 ].

On the international stage, the SEC’s initiatives intersect with Europe’s Markets in Crypto-Assets (MiCA) regulations, which impose strict requirements for stablecoin reserves and consumer safeguards. Although the U.S. has yet to implement a comprehensive federal law, the SEC’s Joint Statement with the Commodity Futures Trading Commission (CFTC) in September 2025 clarified that regulated exchanges may list spot crypto assets under current regulations. This development has led to over 90 ETF applications and marks a move toward greater institutional involvement.

The task force’s strategic plan highlights the need for cooperation between regulators and industry leaders. By tackling quantum security risks, updating custody practices, and clarifying the rules for tokenized securities, the SEC is working to build a robust digital asset market. Nevertheless, challenges persist in aligning U.S. and EU regulations and addressing the dangers of fragmented oversight. For now, the SEC’s approach—blending enforcement with support for innovation—places it at the forefront of shaping crypto regulation’s future title4 [ 4 ].