The White House is preparing new executive actions on quantum technology, according to a report by NextGov. These actions could range from one order to as many as three, with the main goal being to guide federal agencies toward post-quantum cryptography.
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Post-quantum cryptography refers to new security codes that can hold up against future quantum computers. In 2023, the National Institute of Standards and Technology released the first approved set of these codes. Since then, the Office of Management and Budget has requested that agencies and contractors begin planning phased transitions to these new systems. The new orders would give more weight to those steps and set deadlines for agencies to follow.
Focus on Security and Policy Continuity
The push is linked to long-term security. Officials warn that foreign actors (mainly China) may store U.S. data today and break current codes once quantum machines become strong enough. It is referred to as “harvest today, decode later.” Because many networks run on older systems, experts say a complete shift to new codes could take more than ten years. The White House wants to begin the move now rather than wait for the tech to arrive.
At the same time, the orders would extend a policy path that began with the National Quantum Initiative Act, which President Donald Trump signed in 2018. That law funded billions for research and links between government, schools, and industry. It expired in 2023 and still awaits action in Congress. For now, the executive branch is using its own authority to keep quantum projects moving.
NextGov reported that the number of actions still depends on how broad the White House decides to go. If the orders are narrow, they may focus only on encryption standards. If they are wider, they could touch on research and broader use of quantum systems across government. Either way, the first focus will be on migration to post-quantum cryptography.
Potential Market Impact
Cybersecurity firms may see new demand as agencies move to upgrade their systems. Companies such as Palo Alto Networks (PANW), CrowdStrike (CRWD), and Fortinet (FTNT) could benefit if the federal shift prompts more contracts tied to stronger code standards. Large tech groups with quantum research units, including International Business Machines (IBM) and Alphabet (GOOG) (GOOGL), may also see momentum as the U.S. looks to advance both defense and research goals.
By using TipRanks’ Comparison Tool, we’ve lined up and compared all the cybersecurity companies appearing in the piece alongside IBM and Google. The Comparison Tool enables all investors to gain a broader look at each stock and, in this case, the cybersecurity sector as a whole.
