Trump-Backed Board of Peace's Stablecoin Project for Gaza Faces Regulatory Hurdles

Digital Aid Plan for Gaza According to a report by the Financial Times, the Board of Peace group, established within the framework of Donald Trump’s Middle East peace vision, is conducting a preliminary review of a stablecoin project to support digital transactions in the Gaza region.
The primary goal of the project is to ensure that humanitarian aid is delivered faster and more securely by creating an alternative to traditional banking systems, which have become inadequate due to the region's challenging economic and political conditions.
For the project to be implemented, it must first register with the U.S.
Financial Crimes Enforcement Network (FinCEN) and ensure full compliance with anti-money laundering (AML) and know-your-customer (KYC) procedures.
Additionally, the Howey Test, applied by the SEC to determine whether an asset constitutes an investment contract, could lead to the project being classified as a security, resulting in additional reporting obligations.
Sanctions and Operational Risks Due to Gaza's sensitive location, sanctions from the Office of Foreign Assets Control (OFAC) under the U.S.
Department of the Treasury are also seen as one of the biggest obstacles facing the project.
Experts emphasize that issuing such a digital asset may require money transmitter licenses at the state level and that reserve transparency is of vital importance.
While the project is still in the preliminary review stage and has not caused significant volatility in the cryptocurrency market, it is believed that it could set a precedent for future stablecoin regulations.