The Senate will now consider a bill that could result in a TikTok ban, with the House having already passed it.

• The Protecting Americans from Foreign Adversary Controlled Applications Act was approved by the House, which requires ByteDance to divest TikTok or face a ban on the app in the U.S.
• The bill now moves to the Senate, where its fate remains uncertain as senators seem divided on the proposed legislation.

On Wednesday, the House passed a bill requiring ByteDance to divest TikTok or face a ban on the app in the U.S.

The measure passed with a resounding 352-65 vote, with one member voting present.

The Protecting Americans from Foreign Adversary Controlled Applications Act was introduced by Reps. Mike Gallagher and Raja Krishnamoorthi on March 5, and two days later, the Energy and Commerce Committee unanimously approved the bill, which considers TikTok a threat to national security due to its foreign control.

The bill's fate in the Senate is uncertain as senators are divided about the legislation, and other efforts to ban TikTok have been halted.

"The TikTok spokesperson stated that the process was kept secret and the bill was rushed through for one reason: it's a ban. They expressed hope that the Senate would consider the facts, listen to their constituents, and recognize the impact on the economy, small businesses, and the 170 million Americans who use their service."

President Biden has stated that he would sign the bill if it is passed, and White House press secretary Jean-Pierre has acknowledged that the White House is providing technical support in the drafting of the legislation. Jean-Pierre stated in a media briefing on March 6 that once the bill is on legal standing and can be passed by Congress, the President would sign it.

The bill, if enacted, would require ByteDance to divest TikTok within six months, and app store owners such as Google and Apple, as well as internet-hosting companies, would be prohibited from supporting TikTok and other apps linked to ByteDance.

While lawmakers from both parties maintain that TikTok poses a national security risk due to its ties to the Chinese Communist Party, as asserted by TikTok CEO Shou Zi Chew during Senate hearings, tech policy and civil liberties groups such as the American Civil Liberties Union and the Knight Institute argue against the bill, citing concerns about First Amendment rights violations.

In an interview with CNBC, Donald Trump expressed concern that banning TikTok could benefit Facebook parent Meta.

"I believe Facebook is an enemy of the people, and its growth can be increased without TikTok, as Trump stated," the statement reads.

The former president's comments were significant because the Trump administration had previously tried to remove TikTok from app stores in 2020 and called on ByteDance to divest the app, while Microsoft was considering acquiring TikTok in a deal worth between $10 billion and $30 billion. However, talks between the two companies fell through, and the Biden administration eventually revoked the Trump administration's order.

If the latest TikTok bill passes, Angelo Zino, a vice president and senior equity analyst at CFRA Research, believes that TikTok's U.S.-only business could be valued at over $60 billion based on market peer valuations.

If ByteDance decides to stop TikTok's business in the U.S., it's uncertain if it would reach the point of a ban, Zino stated in an email.

This week, Keith Rabois, a well-known venture capitalist and Republican donor, stated on X that he would never finance any Republican candidates or leadership PACs (or the NRSC) who opposed the TikTok legislation.

Rabois stated in an email to CNBC that the TikTok bill's support is a test of members of Congress's IQ.

Several TikTok creators are exploring alternative ways to expand their businesses and establish their brands beyond creating viral videos on the platform, as a potential ban of TikTok in the U.S. looms, according to CNBC.

Beacon CEO argues that the TikTok ban is not censorship but rather a matter of national security.