In a significant move on Capitol Hill, the U.S. House of Representatives is setting the stage for a vote on a bill that could ban TikTok and spell the end for the platform’s operations in the United States. This development follows an unanimous decision by the Energy and Commerce Committee. The Committee voted 50-0, showcasing strong bipartisan support for action against the widely popular video-sharing app, owned by China-based ByteDance.
Steve Scalise’s tweet. Source: X
Security Concerns Drive Tiktok Ban
The Act here, known as the ‘Safeguarding American Users from Overseas Adversarial Influences Act’, addresses an issue around TikTok’s affiliation to China. Consequently, policymakers worry that the government could harvest users’ personal data from this platform. They also fear it could influence content, potentially threatening security.
“The capability of the government of China to access the user data in America or manipulate a large number of America’s population is something this legislation aims to tackle.”
Cathy McMorris Rogers stated, as the Chairwoman of the Energy and Commerce Committee.
Certainly, should the legislative winds blow in the security bill’s favour next week, ByteDance would find itself racing against the clock. The company would be forced to sell its TikTok holdings within six months or be banned from the US.
The implications of this security bill stretch beyond the realm of digital privacy, intersecting with the burgeoning world of cryptocurrency. Recently, TikTok became a hotspot for retail investment frenzy and questionable financial schemes. In addition, the TikTok trends have sparked many crypto scams, such as the Jeff Bezos Bitcoin Promo Code and Elon Musk-themed giveaways, which have succeeded in scamming users and investors.
For example, one of the most prominent cases, involves Lee Byung-Gul, the CEO of South Korea’s failed V Global Exchange. Lee Byung-Gul was recently sentenced to 25 years in prison for defrauding investors of $2.3 billion in a pyramid scheme. The sentence was upheld by South Korea’s Supreme Court earlier this year.
Above all, it will be interesting to see how the impending bill will play out with regard to a TikTok ban, and what the effects will be on the markets that have come to rely on the platform.
