TikTok and its Chinese parent, ByteDance Ltd., have secured their future in the U.S. after finalizing a deal that shifts parts of its U.S. operations to American investors, ending a nationwide ban and resolving a prolonged standoff over national security and data privacy concerns.
Earlier, it was reported that the social media company would establish a U.S. entity with American investors, including Oracle Corp. On Friday, the social media company announced it has officially established the U.S. entity “TikTok USDS Joint Venture LLC” in accordance with the Executive Order signed by President Trump on September 25, 2025. The new venture will allow 7.5 million businesses and more than 200 million Americans to continue exploring, producing, and prospering as members of TikTok’s dynamic global community and experience.
The USDS Joint Venture’s mission is to protect user data, apps, and algorithms in the United States by implementing comprehensive cybersecurity and data protection measures.
The business will be governed by a seven-member, majority-American board of directors: Timothy Dattels, Mark Dooley, Egon Durban, Raul Fernandez, Kenneth Glueck, and David Scott. Shou Chew, as the seventh, will continue running TikTok as Chief Executive Officer.
Adama Pressers, who served as Head of Operations, Trust and Safety in the social media company, is now with the new U.S. entity and will helm the USDS Joint Venture as Chief Executive Officer.
New US venture takes control of TikTok operations
Under the new U.S. ownership structure, existing and new investors will each own 50%. For existing investors, ByteDance will own 19.9%, while affiliates of confident ByteDance investors will own 30.1%. Regarding the new investors, Oracle, Silver Lake, and MGX will each own 15% of TikTok, while the Unknown investors will own only 5%.
The new U.S. venture will be liable for moderating content on the social media platform and protecting U.S. users’ data. Oracle, a longtime cloud computing partner of the social media firm, will serve as a security guard, ensuring it complies with the law.
Third-party cybersecurity specialists will assess and certify the Joint Venture’s extensive data protection and cybersecurity procedures. The program will adhere to important industry standards, including ISO 27001 and the National Institute of Standards and Technology (NIST) CSF and 800-53. Furthermore, the program shall comply with the Security Requirements for Restricted Transactions issued by the Cybersecurity & Infrastructure Security Agency (CISA).
However, critics have contended that the arrangement does not follow the U.S. national security law passed in 2024 under the former U.S. president Biden administration that forced a spinoff. According to the law, ByteDance and US TikTok cannot operate together.
As previously reported by Cryptopolitan, the law cited concerns that the Chinese government may misuse U.S. user data or utilize the program to promote Beijing-friendly narratives. TikTok retaliated, stating that neither had occurred, and that the joint venture was formed in accordance with Trump’s executive order from September 25 of last year.
The White House’s proposal permits ByteDance to lease a copy of its content algorithm to the upcoming U.S. TikTok company, retraining the algorithm using user data from the U.S. Additionally, ByteDance is anticipated to keep control over important aspects of its U.S. TikTok business, such as its advertising section and rapidly expanding e-commerce arm TikTok Shop.
Canadian court blocks government effort to restrict TikTok
TikTok is also celebrating a victory in Canada, where a federal court ruled that the Canadian government’s attempts to drive the company out of the local market on national security grounds are invalid.
In 2024, the Canadian government ordered TikTok to shut down its Canadian operations, citing national security concerns. Francois-Philippe Champagne, the Canadian Innovation Minister at the time, stated that the decision was predicated on “national security risks,” with a particular emphasis on the operations “conducted in Canada by TikTok at their offices.”
Canadian authorities offered no further clarification.
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It’s free.
Source: https://www.cryptopolitan.com/tiktok-seals-us-operating-deal/
