Introduction
Coinbase CEO Brian Armstrong has dismissed fears that quantum computing will ‘break the blockchain,’ calling it a ‘very solvable issue.’ The exchange has formed a quantum advisory board as major blockchain networks like Bitcoin, Ethereum, and Solana accelerate preparations for cryptographic upgrades. Armstrong also addressed U.S. regulatory discussions, explaining Coinbase’s stance on the CLARITY Act draft while expressing confidence in reaching a legislative compromise.
Key Points
- Coinbase has formed a quantum advisory board including prominent cryptographers like Scott Aaronson and Dan Boneh to assess risks and develop migration strategies.
- Major blockchain networks are actively preparing for quantum threats: Ethereum elevated post-quantum security as a strategic priority, Solana is testing quantum-resistant signatures, and Bitcoin developers are advancing proposals like BIP 360.
- Armstrong addressed U.S. regulatory discussions, explaining Coinbase's concerns with the CLARITY Act draft while supporting CFTC authority over prediction markets and expressing confidence in legislative compromise.
A Solvable Challenge: Industry Mobilizes for Quantum Era
During an interview at the World Liberty Forum in Mar-a-Lago, Coinbase CEO Brian Armstrong directly countered a growing concern in the crypto sector. When asked by CNBC’s Sara Eisen if quantum computing would ‘break the blockchain,’ Armstrong replied, ‘No, that’s not true. I think that’s a very solvable issue.’ He emphasized that Coinbase has been ‘very front-footed on this,’ highlighting the formation of a quantum advisory council and regular contact with major blockchains to chart a path to a post-quantum cryptography world. This stance reflects a broader industry shift, where quantum computing is moving from a distant theoretical risk to a long-term engineering consideration for blockchain developers.
Armstrong’s confidence is grounded in concrete action. Last month, Coinbase formalized its efforts by convening an independent quantum advisory board. This council includes leading academic and industry minds such as University of Texas professor Scott Aaronson, Stanford cryptographer Dan Boneh, Ethereum Foundation researcher Justin Drake, and Coinbase Head of Cryptography Yehuda Lindell. The group is tasked with publishing research to assess quantum-related risks and outline migration strategies for the ecosystem. This proactive approach signals that the industry is not waiting for a crisis but is actively preparing for a future where current encryption standards may be vulnerable.
The core risk, as explained by Pranav Agarwal, an independent director at India’s Jetking Infotrain, is quantum computing’s potential to break the private keys of the SHA-256 encryption that secures assets like Bitcoin. However, Agarwal noted that ‘it is much easier to upgrade the encryption’ than to build a quantum computer capable of the attack, and he believes ‘there is enough time’ for the industry to strengthen cryptography across major networks. This view underscores the central thesis: the threat is manageable through planned, coordinated upgrades rather than representing an existential flaw in blockchain technology itself.
Blockchain Networks Accelerate Cryptographic Preparations
Across the crypto landscape, preparation for the quantum era is intensifying. The Ethereum Foundation has elevated post-quantum security to a top strategic priority. Ethereum co-founder Vitalik Buterin has urged developers not to delay, arguing the network should aim to be secure for decades without relying on emergency upgrades. This forward-looking stance from one of the largest smart contract platforms sets a significant precedent for the entire industry.
Other major networks are following suit. In December, the Solana Foundation announced it had begun testing quantum-resistant digital signatures on a testnet. Simultaneously, Bitcoin developers have been advancing proposals such as BIP 360, which aims to reduce quantum-exposed key paths within the Bitcoin protocol. These parallel efforts by Ethereum (ETH), Solana (SOL), and Bitcoin (BTC) developers demonstrate a sector-wide recognition of the need for cryptographic evolution. The work is not about patching a broken system but about proactively transitioning global financial systems and decentralized networks to new, quantum-resistant standards—a process researchers warn could take years and thus requires an early start.
Regulatory Landscape: Armstrong on the CLARITY Act and CFTC
Beyond quantum computing, Armstrong used the CNBC interview to address pressing U.S. regulatory discussions. He explained Coinbase’s decision to oppose the previous draft of the market structure bill, known as the CLARITY Act. Armstrong stated the company had ‘some issues with it,’ particularly around the treatment of stablecoin rewards. He pushed back on narratives that Coinbase ‘blocked’ the legislation, arguing instead that its concerns brought lawmakers ‘back to the table.’
Expressing optimism, Armstrong said he was confident a compromise could still move forward, potentially reaching the President’s desk in the coming months. On a separate regulatory front, he backed the Commodity Futures Trading Commission’s (CFTC) authority over prediction markets, endorsing a clearer regulatory framework for event contracts. These comments, made alongside Sen. Bernie Moreno (R-Ohio), highlight Coinbase’s ongoing engagement with U.S. policymakers to shape a functional regulatory environment for crypto assets.
📎 Related coverage from: decrypt.co
