Can Elon Musk Take Over TikTok Operations in the United States?

China is reportedly considering selling TikTok's business operations in the US to Elon Musk if the ban on the platform takes effect. According to Bloomberg sources on January 14, Musk's social media company, X, could gain control of TikTok's business operations in the US under a discussed scenario. This plan could emerge as a backup option to address potential restrictions from the upcoming Trump administration. However, TikTok's parent company, ByteDance, continues its legal efforts to fight the ban. A TikTok representative told Variety that this report is "completely fabricated". The discussions are said to be related to integrating TikTok US with X, combining the operations of the two platforms. The TikTok Ban from the US is Approaching The U.S. Supreme Court is reviewing a law requiring ByteDance to sell its TikTok operations in the U.S. or shut them down. Effective from January 19, this law was passed due to concerns from both parties about the potential for monitoring and sharing data with the Chinese government. Legislators are concerned that TikTok could provide access to sensitive data about U.S. users. In March 2023, TikTok CEO Shou Chew testified before Congress, facing tough questions about privacy and data security. ByteDance argued that the law violates the rights of 170 million TikTok users in the US under the First Amendment. On January 10, the Supreme Court heard arguments in TikTok's emergency petition to block the law. President-elect Donald Trump, expected to take office on January 20, is reportedly seeking to delay the implementation of the ban order to facilitate negotiations. However, ByteDance is facing increasing pressure to comply with the law or risk losing access to an important market. Valuation of TikTok in the US and the Role of Elon Musk Bloomberg Intelligence analysts estimate that TikTok's operations in the US are worth between 40 and 50 billion USD. Musk, the owner of social media platform X, has expressed concerns about TikTok's ban. In April, he commented

Although there is no confirmation of discussions related to Musk, reports suggest that the Chinese government may consider this option if ByteDance is forced to sell. However, ByteDance has not confirmed whether they are aware of any such discussions or not. RESTRICT Law Causes Concern in the Crypto Community The U.S.-based consultancy organization Coin Center has warned about the RESTRICT Act, comparing it to the International Emergency Economic Powers Act (IEEPA). Coin Center argues that this law grants broad authority to prohibit activities related to "foreign enemies" with minimal oversight. They caution that its potential impact on the cryptocurrency field cannot be overlooked.

Austin Federa, the head of strategy at the Solana Foundation, has pointed out the worrisome implications of the wording of this law. Specifically, he warned that its broad language could lead to significant restrictions affecting American citizens.

Bitcoin YouTuber CryptoWendyO suggested that this law may not be primarily aimed at TikTok but may target cryptocurrencies, NFTs, and other digital assets. She tweeted, 'Banning them is the goal.' Other individuals in the cryptocurrency field have also expressed concerns that this law could be used to block platforms such as TikTok, which is crucial for raising awareness about cryptocurrency projects. Above all, broader implications for freedom of communication and the future of digital currencies remain a major concern for industry members. DYOR! #Write2Earn #MicroStrategyAcquiresBTC $BTC {spot}(BTCUSDT)