U.S. Senators Launch Investigation into Trump-Backed Gaza Reconstruction Plan Involving Controversial Cryptocurrency
Washington, D.C. – April 18, 2026
Senators Jeff Merkley, Elizabeth Warren, Chris Van Hollen, and Bernie Sanders have initiated a congressional probe into the Trump-backed “Board of Peace” (BoP), focusing on its ambitious yet controversial plan to rebuild Gaza using a U.S. dollar-pegged cryptocurrency. The senators, known for their progressive stances, expressed deep concerns over the initiative’s transparency, potential conflicts of interest, and risks of exacerbating economic control in the war-torn enclave.[1]
Background on the Board of Peace and Gaza Reconstruction
The Board of Peace emerged from a U.S.-brokered Gaza ceasefire deal, announced as phase two roughly a month prior to recent developments. Established under President Donald Trump’s administration, the BoP aims to administer postwar Gaza, coordinating international efforts for reconstruction. Key pledges include $17 billion from nine participating countries for relief and rebuilding, alongside commitments from five nations to contribute troops to an International Stabilization Force (ISF).[1]
At its inaugural meeting on February 19, 2026, in Washington, Trump highlighted the $7 billion initial pledges from coalition members, framing it as a comprehensive “relief package” for the devastated territory.[1] The plan addresses Gaza’s economy, crippled after two years of conflict between Israel and Hamas, where traditional banking systems have collapsed.[2]
The Cryptocurrency Proposal at the Center of the Probe
Central to the senators’ scrutiny is the BoP’s exploration of a stablecoin—a cryptocurrency pegged to the U.S. dollar—to facilitate digital transactions and economic recovery. Sources familiar with the discussions told the Financial Times that the project, still in early stages, would enable online business without creating a new “Gaza Coin” or Palestinian currency. Gulf Arab and Palestinian digital firms are reportedly involved in building the infrastructure.[1][2][3]
Israeli tech entrepreneur Liran Tancman, a former intelligence corps veteran and unpaid BoP adviser, is leading the effort. Tancman has collaborated with U.S. officials and presented at a recent BoP meeting, advocating for a “secure digital backbone” supporting e-payments, financial services, e-learning, and healthcare. Participants include Gaza’s National Committee for the Administration of Gaza (NCAG), a 14-member technocratic body, and the Office of the High Representative under former UN envoy Nickolay Mladenov.[2]
Proponents argue the stablecoin could “dry Gaza from cash so Hamas can’t generate any,” reducing illicit funding. It aims to integrate with existing systems, avoiding separation from West Bank transactions in shekels.[3]
Senators’ Concerns: ‘Shady’ Elements and Control Risks
The inquiry, dubbed a probe into the “shady cryptocurrency” scheme, stems from fears of undue influence and surveillance. Critics, including the Euro-Med Human Rights Monitor, warn that digital wallets could mask “engineering control over the population and increasing economic reliance on Israel.”[1] Senators highlighted Tancman’s Israeli ties and the involvement of Gulf entities as potential red flags, questioning oversight and data privacy in a region with limited cellular infrastructure—Israel permits only 2G service in Gaza.[3]
“This isn’t reconstruction; it’s a recipe for digital colonization,” Sanders stated in a joint press release, echoing Warren’s call for full disclosure on funding and stakeholder roles. Merkley and Van Hollen emphasized risks to U.S. taxpayer dollars funneled through the BoP, demanding audits amid Trump’s personal endorsement.[1]
Stakeholder Reactions and Broader Implications
BoP officials have not commented on the probe, but sources insist no final decisions on stablecoin rules have been made, with NCAG set to govern access.[2] Palestinian technocrats in the NCAG express cautious optimism for tech-driven recovery, provided users retain data control.
The initiative unfolds amid fragile postwar stability. The $17 billion pledge, while substantial, faces logistical hurdles in a Strip scarred by destruction. International partners, including the five ISF troop contributors, underscore multinational buy-in, yet human rights groups decry the crypto pivot as experimental and risky.[1]
Implementation challenges persist: Gaza’s 2G networks may hinder adoption, and regulatory frameworks remain undefined. Gulf crypto firms’ role raises geopolitical questions, potentially tying reconstruction to broader Middle East alliances.[2][3]
Congressional Next Steps
The senators plan hearings, subpoenaing BoP documents and summoning Tancman and Mladenov. They seek clarity on the stablecoin’s safeguards against money laundering, Hamas circumvention efficacy, and alignment with U.S. foreign policy. Warren, a crypto skeptic, pushes for blockchain transparency mandates.
This probe intensifies partisan divides. Trump allies defend the BoP as innovative, crediting it with ceasefire progress. Critics view it as privatized foreign policy, blending Trump’s business ethos with national security.
As Gaza rebuilds, the cryptocurrency experiment could redefine postwar economics—or ignite scandal. The Senate’s scrutiny ensures debate, balancing innovation against accountability in one of the world’s most volatile regions.
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