Crypto Stocks Are Heating Up

At the center of this transformation is a game-changing platform that's experiencing explosive growth with $41 million in revenue in just nine months. The stock has doubled in the last 45 days, but this is only the beginning.

Can he do that? Lawyers and lawmakers debate if Trump has authority to suspend the US TikTok ban

SALLY HO
January 20, 2025

On the eve of his inauguration, President Donald Trump said an executive order suspending a nationwide ban on TikTok would be among his first official acts. The social media platform and app's ardent users waited Monday evening to learn if he would follow through and if so, what the order might say.

Trump has amassed nearly 15 million followers on TikTok since he joined last year, and he has credited the trendsetting platform with helping him gain traction among young voters. Yet its 170 million U.S. users could not access TikTok for more than 12 hours between Saturday night and Sunday morning.

The platform went offline before the ban approved by Congress and upheld by the U.S. Supreme Court took effect on Sunday. After Trump promised to pause the ban on Monday, TikTok restored access for existing users. Google and Apple, however, still have not reinstated TikTok to their app stores.

Business leaders, lawmakers, legal scholars, and influencers who make money on TikTok are watching to see how Trump tries to resolve a thicket of regulatory, legal, financial and geopolitical issues with his signature.

How did the TikTok ban come about?

TikTok's app allows users to create and watch short-form videos, and broke new ground by operating with an algorithm that fed viewers recommendations based on their viewing habits. But concerns about its potential to serve as a tool for Beijing to manipulate and spy on Americans pre-date Trump's first presidency.

In 2020, Trump issued executive orders banning dealings with ByteDance, TikTok's China-based parent company, and the owners of the Chinese messaging app WeChat. Courts ended up blocking the orders, but less than a year ago Congress overwhelmingly passed a law citing national security concerns to ban TikTok unless ByteDance sold it to an approved buyer.

The law, which went into force Sunday, allows for fines of up to $5,000 per U.S. TikTok user against major mobile app stores -- like the ones operated by Apple and Google -- and internet hosting services like Oracle if they continued to distribute TikTok to U.S. users beyond the deadline for ByteDance's divestment.

Trump on Sunday said he had asked TikTok's U.S. service providers to continue supporting the platform and app while he prepared to sign an executive order to stop the ban for now.

"The order will also confirm that there will be no liability for any company that helped keep TikTok from going dark before my order," Trump posted on Truth Social, his social networking site.

The law that Congress passed and now-former President Joe Biden signed in April allowed for a 90-day extension if there had been progress toward a sale before the statute's effective date. Less certain is whether that provision can be applied retroactively, according to Sarah Kreps, director of Cornell University's Tech Policy Institute.

"Executive orders cannot override existing laws," Kreps said. "It's not clear that the new president has that authority to issue the 90-day extension of a law that's already gone into effect."

What difference might the sale of TikTok make?

Kreps also doubts the conditions for a delay exist at this point without so much as even a potential buyer being named to prove that a sale was moving along.

But Alan Rozenshtein, a University of Minnesota law professor, has written that the law also empowers the president to decide what constitutes a "qualified divestiture" -- suggesting Trump could have discretion to say whether or when ByteDance meets the terms of the Protecting Americans from Foreign Adversary Controlled Applications Act.

Although ByteDance spent months repeating it wasn't interested in selling, Beijing on Monday also signaled a possible easing on China's stance on TikTok to allow it to be divested from its Chinese parent company. China's vice president held meetings with Vice President JD Vance and Tesla tech titan Elon Musk on Sunday.

Chinese Foreign Ministry spokeswoman Mao Ning, said Monday that business operations and acquisitions "should be independently decided by companies in accordance with market principles."

"If it involves Chinese companies, China's laws and regulations should be observed," Mao said.

Until now, it was widely believed that Beijing would not allow the sale of TikTok, which had come to embody China's defiance in the face of "U.S. robbery." However, TikTok was among several issues brought up in a phone call between Chinese President Xi Jinping and Trump on Friday, though details were not available.

Trump later announced plans to delay the TikTok ban and suggested a joint venture in which the U.S. would get a 50% ownership of the app. Shou Zi Chew, TikTok's CEO, attended Trump's inauguration, seated with American tech heavyweights.

Who or what can enforce the ban?

The Justice Department is generally tasked with enforcing the laws of the federal government, so it's possible that Trump will direct the DOJ to ignore the law. Such a move might itself be subject to legal scrutiny but would buy time for TikTok.

Trump's efforts to save TikTok may put him at odds with some of the House members and senators who voted for the law, which received broad bipartisan support. House Speaker Mike Johnson called ByteDance's ownership "a very dangerous thing," and said he expected a full sale to happen.

"I think we will enforce the law," Johnson told NBC News' "Meet the Press" on Sunday.

Legislators now stand to "look a little bit silly" if the ban doesn't last, Kreps said.

"(The case) becomes about the separations of powers, and checks and balances, that we don't have a king who decides what happens with the law," Kreps said. "Enforcement isn't only up to the executive branch."

What are other potential legal obstacles?

Sen. Tom Cotton of Arkansas, in a message posted on X, listed a number of state and federal agencies, and private entities, that might be willing to go to court to get the ban enforced.

"Any company that hosts, distributes, services, or otherwise facilitates communist-controlled TikTok could face hundreds of billions of dollars of ruinous liability under the law, not just from DOJ, but also under securities law, shareholder lawsuits, and state AGs," Cotton noted.

Despite the intense scrutiny and potential costs involved, the machinations over TikTok are in some ways just business as usual for the tech companies involved, according to Gus Hurwitz, a legal scholar with the International Center for Law and Economics.

"The fines that we're talking about are civil penalties and companies risk civil penalties all the time," Hurwitz said.

Still, the hard business calculus of complying with a law in limbo or risk defying a president who holds lucrative federal contracts over those companies could come into focus if shareholders sue.

Oracle, for example, has a part of the Pentagon's $9 billion contract to build its cloud computing network.

"This actually could be the right business decision to make," Hurwitz said. "That's not necessarily a breach of duty to shareholders."

Which companies are deciding whether to trust Trump's assurances?

There's been lots of questions about how companies such as Oracle and Akamai Technologies are powering TikTok's servers to stay online, while others such as Apple and Google have made the app unavailable for new users to download.

None of the companies have responded to requests for comment.

Oracle in 2020 announced it had a 12.5% stake in TikTok Global after securing its business as the app's cloud technology provider.

Meanwhile, as of Monday night, a search for TikTok on Apple's app store directs to an online statement that reads in part: "Apple is obligated to follow the laws in the jurisdictions where it operates," while Google's app store notes downloads for TikTok "are paused due to current US legal requirements."

___

Ho reported from Seattle. Maya Sweedler and Didi Tang in Washington contributed reporting.

Continue Reading...

Popular

South Carolina treasurer calls questions of his role in $1.8 billion accounting error a witch hunt

COLUMBIA, S.C. (AP) — South Carolina Treasurer Curtis Loftis said Wednesday that calls for him to resign over that left the state trying to figure out what happened to a $1.8 billion fund amounted to a witch hunt.

What to know about Trump's buyout proposal for federal employees

President Donald Trump's administration is offering to federal employees to quickly reduce the government workforce. They don't have a long time to decide: The deadline is Feb. 6.

Legendary Tech Investor: "Forget Nvidia, Buy This Instead" - Ad

In February 2016, Jeff Brown picked Nvidia as one of his favorite stocks. Since then, shares have jumped enough to turn $1,000 into more than $230,000. If you missed out on those massive gains...

Tesla Likely To Sell Optimus To Rivals In 2026, Elon Musk Says Revenue Potential Of Bot North Of $10 Trillion: 'It's Real Bananas'

Tesla Inc CEO Elon Musk on Wednesday said that the company intends to make several thousand units of its Optimus humanoid robot this year for deployment in its own factory which will inform the next version of the robot slated for launch next year and likely to be sold to rival companies.

China's factory activity contracts in January for the first time in 4 months

HONG KONG (AP) — Manufacturing slowed in China in January for the first time in four months as workers began leaving assembly lines to travel to their hometowns for Lunar New Year holidays.

The Closest Thing to 'Push Button' Investing - Ad

You buy when these 'windows' open -- and sell when they close... Yes, it's that easy. It doesn't matter if you're just starting out, or if you've been investing for decades... This brain-dead simple trading strategy is designed to deliver triple-digit gains - WITHOUT tying your money up for years on end.

Cathie Wood Dumps Tesla Stock Ahead Of Q4 Earnings, Ark Invest Loads Up On Amazon

On Tuesday, Jan. 28, 2025 Cathie Wood-led Ark Invest sold shares of Tesla ahead of its fourth-quarter earnings. Wood purchased Amazon shares on the same day.

Japanese automaker Nissan says it plans job and production cuts in the U.S.

TOKYO (AP) — Nissan is slashing production at its U.S. plants and offering buyouts to factory workers there as part of the Japanese automaker’s urgent efforts to return to profitability.

Elon's Next Millionaire-Making Project? - Ad

This could create more wealth than all of his previous ventures... combined.

Europe's economy showed zero growth at end of 2024 as Germany, eurozone's biggest economy, struggled

FRANKFURT, Germany (AP) — Europe’s economy stagnated at the end of last year as its former growth engine, Germany, finished a second straight year of shrinking output, officials said Thursday.

6 Clean Energy Stocks Face Challenges, Opportunities Ahead Of Earnings

Analyst revises ratings/price forecast on clean energy stocks ahead of earnings release. Highlights key areas to watch for each company.

Tired of Losses? Try Gigapips! - Ad

Stop losing and start earning on Forex with GigaPips MT4 EA. This expert advisor avoids risky strategies like Grid, Hedge, Arbitrage or Scalping. With WinRate above 66%, DrawDown below 38% and yearly profits averaging over 100%. GigaPips is well optimized for XAUUSD H1 using high-quality tick data from DukasCopy since 2016 till present. Features include spread filters, slippage protection, and equity safeguards.

Magnificent 7 Earnings Ahead: 3 ETFs To Ride The Wave

Earnings season in full swing, attention on tech giants known as Magnificent 7: 3 ETFs to consider.

Bill Ackman Questions Whether DeepSeek AI's Hedge Fund Affiliate Profited From Nvidia's Sell-Off: 'A Fortune Could Have Been Made'

Billionaire investor Bill Ackman questioned whether DeepSeek's hedge fund affiliate potentially profited from Monday's tech stock rout, which saw Nvidia Corp. shares plunge 17% following the Chinese artificial intelligence startup's emergence as a potential disruptor.

Top AI Stocks for 2025 - Ad

My 2025 AI Blueprint features three of what I call Nvidia's "Silent Partners." Some of the world's hottest companies are working with AI's undisputed leader, Nvidia. And I've identified three of them that appear to be well-positioned for the next AI boom in 2025. Everything you need to know about them in my 2025 AI Blueprint.

Kansas City Battles Major Tuberculosis Outbreak, 67 Active Cases, Hundreds Under Watch

Kansas City faces one of the worst U.S. tuberculosis outbreaks, with 67 active cases and 384 people under monitoring.

MrBeast's Net Worth Hits $1 Billion—But In 2023, He Promised To 'Give Away' All His Money. What Drives The YouTuber's Philanthropy?

MrBeast, who once defended his charity-driven content by pledging to give away all his money, has officially become a self-made billionaire with a $1 billion net worth, driven by his massive YouTube empire, merchandise sales, and a $100 million Amazon streaming deal.

Unlocking a Polymetallic Discovery Like No Other - Ad

With drill results rivaling the best in the world and a fully funded 2025 program, this polymetallic stock is poised for major growth. Industry icons Robert Friedland and Rob McEwen are already in. Will you be next?

Trump White House Puts DeepSeek Under National Security Scanner: 'Wake-Up Call To The American AI Industry'

The White House is reviewing China's DeepSeek AI for potential national security risks, amid growing concerns over intellectual property theft and its impact on U.S. AI dominance.

Trump Could Make Surprising Tech Announcement Any Day - Ad

Elon Musk is heavily invested in a cutting-edge new technology. In fact, Musk has turned the new president on to this breakthrough. And President Trump could make an announcement any day that could spike the price of stocks in this sector.

F5 Sees Big Wins in Multi-Cloud, AI Security, and IT Refresh, Analysts Forecast More Upside

F5 Inc (NASDAQ: FFIV) reported strong Q1 results, beating revenue and EPS estimates. The stock gained as analysts raised price targets and expectations for further growth from IT budgets, data center refresh, and AI demand.

Trump Slams Fed's 'Terrible Job' On Bank Regulation After Rate Hold, Vows To 'Unleash Lending For All American People'

President Donald Trump criticized the Federal Reserve's handling of inflation and banking regulation on Wednesday, following the central bank's decision to hold interest rates steady at 4.25%-4.5%.

The Next Big Opportunity in Electric Vehicles - Ad

The electric revolution is hitting the water, and one company is surging ahead with unmatched efficiency and groundbreaking tech. Positioned in a market expected to triple by 2033, This stock is making waves among smart investors.

Gary Black Calls Tesla's Austin Robotaxi Launch By June 'Most Bullish' Takeaway, But Wants Answers On Auto Margins And Next-Gen EV

Tesla Inc. bull Gary Black highlighted the company's planned autonomous ride-hailing service in Austin as a significant development while expressing concerns about automotive margins and the forthcoming affordable electric vehicle's design.

Mark Zuckerberg Says China's DeepSeek Did Some Novel Things 'We're Still Digesting,' But Meta May Keep Pouring Billions Into AI Infrastructure Anyway

Meta CEO Mark Zuckerberg acknowledged that China's DeepSeek made novel advancements that Meta is still evaluating but emphasized that the company will continue investing billions in AI infrastructure, seeing it as a long-term strategic advantage.

Love or Hate Him -- You Have To See What Elon Could Do Next - Ad

It's not electric vehicles, green energy or space travel that Elon Musk will be remembered for.

Shiba Inu's Shytoshi Kusama Teases 'Extremely Powerful Partnership' -- Coin Themed On Him Rallies 25%

Shiba Inu (CRYPTO: SHIB) lead ambassador Shytoshi Kusama hinted at a major partnership announcement for the blockchain ecosystem on Tuesday, stirring up excitement among enthusiasts.

'Mona Lisa' will get its own room under a major renovation of the Louvre

PARIS (AP) — French President Emmanuel Macron announced Tuesday that will get its own dedicated room inside the Louvre museum under a major renovation and expansion of the Paris landmark that will take up to a decade.

Undervalued Stock Riding the $22B Electric Boating Wave - Ad

In a booming $22 billion market, one company is redefining electric boating with record-breaking technology and strategic partnerships. With production scaling fast and an innovative powertrain already in demand.

Bank of America's Sensitive Customer Data Compromised in Third-Party Hack - Is Your Account Safe?

Bank of America (NYSE: BAC) has confirmed a data breach involving a third-party software provider that led to the exposure of sensitive customer data.

Nvidia Says DeepSeek An 'Illustration' Of How New AI Models Can Be Created While Being Export-Control Compliant Amid $600 Billion Market Value Plunge

Nvidia Corp. has thrown its support behind China's DeepSeek R1 artificial intelligence model, calling it "an excellent AI advancement" even as the startup's emergence triggered a historic $600 billion plunge in the chipmaker's market value on Monday.

Hidden Gem in the Electric Boating Boom - Ad

The electric boating market is growing fast, and one little-known stock is perfectly positioned to capitalize. With cutting-edge technology and access to a $22 billion market, this could be the breakout opportunity of the year.

Stock market today: Asia shares mostly rise while some regional markets stay closed for holidays

TOKYO (AP) — Asian shares mostly rose Thursday after the U.S. Federal Reserve opted for the first time since it began trying to help through easier rates in September.

Is This Defi Coin Your Next "10-Bagger" Investment? - Ad

Our #1 pick in decentralized finance is largely overlooked by mainstream investors (for now). This governance token could skyrocket as DeFi adoption surges with the smart money and institutions.

Meat and greet: Historic London market counting down the years

LONDON (AP) — Norman Gregory is an institution within an institution. He’s been working at the historic Smithfield wholesale meat market in central London since 1961, witnessing first hand the rapid transformation of the capital over the decades.

Robert Kiyosaki Predicts Yet Another Stock Market Crash, Pitches Bitcoin Investments -- Here's What The 'Rich Dad Poor Dad' Author Said

Renowned investor and author Robert Kiyosaki on Monday predicted a major stock market crash in February and advised investors to focus on Bitcoin (CRYPTO: BTC), gold, and silver.

Crypto Stocks Surge Amid Market Boom - Ad

Crypto stocks are on fire as Bitcoin hits all-time highs. One under-the-radar company is leading the charge, managing $2.1 billion in client assets and seeing record trading volumes. With crypto adoption skyrocketing, this could be a game-changing opportunity.

Elizabeth Warren To Elon Musk: Cut Unnecessary Federal Cannabis Enforcement And Save Billions

Sen. Elizabeth Warren (D-Mass.) sent a detailed letter to Elon Musk, chair of the newly established Department of Government Efficiency (DOGE) with numerous suggestions for slashing federal spending.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright smartmoneytrading.net
Privacy Policy | Terms of Service