US Government in Talks for Quantum Computing Equity Stakes, Raising Crypto Security Alarms

The United States government is in early talks with quantum computing companies to provide financial assistance, using funds earmarked for the CHIPS Act, citing national security interests and competition with China.

Department of Commerce officials, led by Deputy Secretary Paul Dabbar, are exploring equity stakes in firms like IonQ, Rigetti Computing, and D-Wave Quantum, with minimum funding awards of $10 million each.

This follows similar arrangements, such as the government taking a 10% stake in Intel in August 2025, though the Commerce Department has denied ongoing negotiations, contradicting reports.

Economist Peter Schiff criticized the move, arguing it tilts the US toward a centrally planned economy by interfering with free market allocation.

Quantum computers pose an existential threat to cryptocurrencies by potentially breaking modern encryption standards foundational to blockchain security, with experts debating the timeline for 'Q-Day'—some project it within five to ten years.

Techniques like 'harvest now, decrypt later' are already emerging, where threat actors store public keys for future decryption once powerful quantum computers are available.

The crypto industry is actively searching for post-quantum cryptographic solutions to mitigate risks, as advancements from companies like Google show quantum computers can run 13,000 times faster than classic supercomputers.