TikTok has announced the formation of a new entity, TikTok USDS Joint Venture LLC, aimed at continuing its operations in the United States under the guidelines of a 2025 Executive Order signed by former President Donald Trump. This move follows legislation passed in April 2024 that mandated TikTok’s compliance due to national security concerns regarding its Chinese parent company, ByteDance.
The joint venture will give renamed TikTok American ownership like we’ve never seen before. That has always been one of the big stipulations of the new legislation anyway. This initiative comes after TikTok faced a temporary ban last year, following a federal law enacted by former President Joe Biden. The new structure aims to alleviate concerns regarding data privacy and cybersecurity while allowing TikTok to maintain its presence in the U.S. market.
Compliance with National Security Mandates
The national security justification for this action Congress passed the legislation forcing these changes, pointing to serious national security concerns linked to ByteDance’s ownership of TikTok. The new joint venture TikTok USDS Joint Venture LLC will be fertile ground for American control and oversight.
According to a company statement, “The majority American owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users.” This new structure should further assure American users that their data will be monitored and protected.
The Executive Order signed by President Trump in September 2025 temporarily blocked the enforcement of the national security law for 120 days. This extended pause gives TikTok plenty of room to complete the joint venture agreement before January 23, 2026. TikTok will implement a global data privacy and cybersecurity programme during this time. Through the development of this program key industry standards will be addressed.
Data Privacy and Cybersecurity Initiatives
As part of TikTok’s commitment to user safety, TikTok agreed to develop a strong data privacy and cybersecurity program. Accountability and transparency This program will be independently audited and certified by independent third-party cybersecurity experts.
The company emphasized that this initiative would “safeguard the U.S. content ecosystem through robust trust and safety policies and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications.” The program will be held to high standards, including equity and environmental justice. This incorporates the standards set forth by the National Institute of Standards and Technology (NIST) paired with the Cybersecurity and Infrastructure Security Agency (CISA).
Further, TikTok has pledged to safeguard U.S. users’ data through Oracle’s secure U.S. cloud infrastructure. This decision was made to better address the security of user information and help protect it from future breaches or unauthorized access.
Algorithm Updates Tailored for U.S. Users
TikTok has repeatedly pledged to bolster its cybersecurity defenses. As a part of this settlement, the company must retrain and recalibrate its content recommendation algorithm to serve users located in the United States. This change is intended to help it continue to serve its American audience while following new regulatory requirements.
President Trump celebrated the deal, referring to TikTok as now being owned by a “group of Great American Patriots and Investors, the Biggest in the World.” Among other things, he thanked Chinese President Xi Jinping for approving the deal. This type of collaboration — state and federal coordination to leverage complementary dollars — is essential for meaningful progress.
Despite these changes, both TikTok and ByteDance have consistently denied claims that the Chinese government could compel them to hand over data on U.S. users. The formation of TikTok USDS Joint Venture LLC is an important step in addressing these issues. This agreement allows the growing platform to stay open and registered to operate in the United States.
