TikTok’s New U.S. Structure Could Bring Stability for Brands and Creators - Adil Raseed

TikTok has taken a major step toward resolving long-running U.S. regulatory concerns by announcing a new U.S.-based joint venture, a move that could significantly reduce the risk of bans or forced divestment — and bring long-term clarity for advertisers, creators, and partners.

The new entity, TikTok USDS Joint Venture LLC, was established under an executive order signed on Sept. 25 and is designed to meet federal national security requirements while keeping the platform available to more than 200 million users in the United States.

The big picture

At the center of the announcement is a structural shift in control.

The U.S. joint venture is majority American-owned and independently governed, with direct authority over U.S. user data, trust and safety operations, and key elements of TikTok’s recommendation systems. ByteDance’s ownership is capped at 19.9%, a level U.S. officials have repeatedly referenced as below national security risk thresholds.

This structure expands TikTok’s existing U.S. Data Security framework and is intended to isolate sensitive systems from foreign access.

Why this matters for brands and marketers

For years, TikTok’s future in the U.S. has been clouded by regulatory uncertainty. Threats of bans, forced sales, or sudden platform disruption made long-term planning difficult for advertisers and creators alike.

This joint venture could represent a turning point.

By shifting control of U.S. data, moderation, and algorithm security to a U.S.-governed entity, TikTok is addressing the core concerns raised by lawmakers. If the structure holds up under scrutiny, brands may finally be able to invest in TikTok with greater confidence and longer time horizons.

For the broader tech and advertising ecosystem, it also sets a precedent for how foreign-owned platforms may be regulated in the U.S. going forward.

How the security safeguards work

Under the new framework, U.S. user data will be stored and protected within Oracle’s U.S.-based cloud infrastructure. The system will be subject to ongoing audits and third-party cybersecurity certifications.

The joint venture says its security program aligns with federal and industry standards, including:

NIST
ISO 27001
CISA requirements

In addition, TikTok’s recommendation algorithm for U.S. users will be:

Trained and updated using U.S. data
Operated entirely within Oracle’s U.S. environment
Continuously reviewed through formal software assurance processes

The source code will also undergo ongoing inspection to ensure compliance and integrity.

Trust, safety, and content moderation

One of the most significant changes involves decision-making authority.

Unlike earlier arrangements, the U.S. joint venture will directly control trust and safety policies and content moderation for American users. This is designed to strengthen accountability and reduce concerns about foreign influence over sensitive moderation decisions.

For creators and advertisers, this could translate into clearer governance and more predictable enforcement of platform rules.

Global reach with U.S. oversight

While the joint venture assumes responsibility for security, safety, and governance in the U.S., TikTok’s global U.S.-based entities will continue managing interoperability and commercial operations, including advertising, ecommerce, and partnerships.

TikTok says this structure ensures that U.S. creators and businesses remain discoverable worldwide, while sensitive systems remain under domestic oversight.

Who’s running the joint venture

The new entity is governed by a seven-member board, with a majority of American directors. Board representation includes executives from Silver Lake, Oracle, Susquehanna International Group, and MGX.

Leadership appointments include:

Adam Presser as CEO
Will Farrell as Chief Security Officer

The board’s security committee is chaired by Raul Fernandez, CEO of DXC Technology.

Ownership breakdown

The joint venture’s three managing investors — Silver Lake, Oracle, and MGX — each hold a 15% stake.

Additional ownership includes investors affiliated with Michael Dell, General Atlantic, Dragoneer, and Xavier Niel. The same security safeguards will also apply to TikTok-owned apps in the U.S., including CapCut and Lemon8.

What comes next

TikTok’s U.S. joint venture is positioned as a long-term answer to mounting regulatory pressure. Whether it fully satisfies lawmakers and national security agencies will depend on how oversight, audits, and enforcement play out in practice.

For now, the move offers something TikTok hasn’t had in years: a clearer path forward. For brands, creators, and agencies, that clarity could finally make TikTok a more stable foundation for long-term growth — rather than a platform perpetually at risk.