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President-elect Donald Trump was early to warn about the national security dangers posed by TikTok during his first term in office, with rhetoric and policy discussions that framed the social media app within his aggressive anti-China stance. But during the 2024 campaign, Trump seemed to do an about-face.

In an interview on CNBC’s “Squawk Box” last March, Trump said banning TikTok would make young people “go crazy” and would also benefit Meta Platforms‘ Facebook.

“There’s a lot of good and there’s a lot of bad with TikTok,” Trump said. “But the thing I don’t like is that without TikTok, you can make Facebook bigger, and I consider Facebook to be an enemy of the people, along with a lot of the media.”

Trump’s transition team hasn’t commented on TikTok specifically, but has said the election results give the president a mandate to follow through on the promises he made on the campaign trail, and there are some big deadlines coming up related to TikTok’s fate.

Before Trump is even president, the U.S. Court of Appeals for the D.C. Circuit is expected to issue a ruling by Friday on a challenge to the new law requiring ByteDance, TikTok’s Chinese parent company, to divest its U.S. operations by January 19. This case has broad implications, touching on national security concerns, constitutional questions about free speech, and the future of foreign-owned tech platforms in the U.S.  

Courts generally defer to the executive and legislative branches on national security matters, but the outcome may depend on whether the court frames the issue solely as a national security question or also considers First Amendment concerns. The balance likely favors the government given Congress’s clear constitutional authority to regulate foreign commerce, which supports the legislation requiring ByteDance divestment. Regardless, this case is likely headed to the Supreme Court.

As of now, with Trump to be sworn in on Jan. 20, one day after the federal ban on TikTok is scheduled to begin, Trump’s comments have intensified deep concerns about the influence that major donors will have in a second Trump administration and the extent to which private financial interests will be prioritized over national security and public welfare. In fact, it may be the first major decision made by Trump that tells us just how far his administration is willing to go in prioritizing the donor wish list.

Former President Donald Trump: I consider Facebook to be an enemy of the people

At the center of this controversy is Jeff Yass, a major Republican donor with significant financial ties to ByteDance, TikTok’s parent company. Yass, who contributed over $46 million to Republican causes during the 2024 election cycle, reportedly met with Trump in March, though the details of their conversation remain unclear. What is clear, however, is that Yass’s ownership stake in ByteDance has fueled concerns in Washington about whether Trump’s reversal was influenced by donor priorities rather than a pure devotion to market competition.

The Wall Street Journal recently reported that TikTok’s CEO has been personally lobbying Elon Musk, who now has a close relationship with the President-Elect, on his company’s behalf. Meanwhile, Meta’s Mark Zuckerberg dined with Trump at Mar-a-Lago last week.

The optics of a TikTok ban reversal are troubling. Imagine the backlash if a prominent Democratic donor like George Soros — frequently vilified by Republicans — had similarly positioned himself to influence major policy decisions tied to his personal financial interests. The accusations of corruption and undue influence, if not worse, would be deafening. Yet figures like Yass and particularly Elon Musk — who has duct-taped himself, and his entangled financial interests to Trump’s transition team and many of their personnel and policy decisions — face little scrutiny from the same critics who level conspiracy theories against Soros.

This selective outrage underscores a systemic problem: a political system where major donors wield significant influence over policymaking, often without bipartisan expressions of concern or actions that force transparency or accountability.

TikTok’s weaponized influence

Concerns about donor influence are amplified when considering the risks associated with TikTok itself. The app’s meteoric rise has sparked bipartisan alarm over its ties to the Chinese government. Lawmakers and intelligence officials have consistently warned about its potential for data harvesting, espionage, and propaganda. These concerns are not abstract. During the last congressional push to ban TikTok, the app demonstrated its ability to weaponize its platform by rapidly mobilizing its user base to flood lawmakers with calls and emails opposing the ban.

This real-time demonstration of TikTok’s ability to influence public sentiment, amplify social narratives, and pressure lawmakers underscores its unparalleled capacity as a tool for shaping public policy and national opinions. When coupled with ByteDance’s links to the Chinese government, TikTok’s potential for misuse or mischief is alarming.

Another concern around a TikTok ban reversal is the fact that there is already a law addressing TikTok: the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), enacted in April 2024 as part of Public Law 118-50. This bipartisan legislation mandates that foreign adversary-controlled applications, like TikTok, must be divested or face a U.S. ban. As federal law, PAFACA cannot simply be reversed by presidential decree. A U.S. president cannot legally bypass Congress to nullify or override an existing law. Laws passed by Congress remain binding until they are repealed or amended by Congress or struck down by the courts.

Instead of bypassing Congress or undermining existing law, any changes to TikTok’s status should be addressed through the framework that PAFACA provides. Such a transparent process would ensure that decisions are made in public and on behalf of the public interest, not in the backrooms at Mar-a-Lago. With Republicans controlling both the House and Senate during the newly elected Congress, they have the power to amend or repeal PAFACA. However, doing so would require navigating a highly involved legislative process that would inevitably bring more scrutiny to Yass.

Trump’s options

Given Trump’s dominance of the federal courts at the highest level, he could use this route, but short of the courts, the president’s authority in this context is limited. Any Trump effort to unilaterally overturn a TikTok ban as president would be difficult to execute based on how the system is supposed to work.

Two options Trump would have are enforcement discretion and executive orders. The president has considerable discretion in how federal laws are enforced. For instance, executive agencies might prioritize certain aspects of a law over others, effectively scaling down enforcement in particular areas. While executive orders cannot override existing laws, they can guide how the executive branch implements them, potentially narrowing their scope. Presidents have historically used enforcement discretion to achieve policy objectives without openly violating the law. 

But addressing TikTok through the existing legal framework already established by PAFACA would allow for the consideration of balanced alternatives, such as requiring stricter data security measures, local data storage, or divestiture that places TikTok’s operations under U.S. ownership. These options could protect users’ access to the app while addressing legitimate security risks.

Many of these alternatives have been explored in public discussions and through proposals like “Project Texas,” and some have found their way into law. They have also been subject to criticism and challenges, largely about insufficient follow-through or the perception that these efforts are not thorough, would never be agreed to by the Chinese government, or are just incomplete or inadequate to address security concerns. But consideration of these remedies should continue — to date, the execution has been nonexistent rather than the proposals being outright failures. 

The broader implications of donor-driven policy

Trump’s March comments on TikTok get one thing right. It is important to acknowledge that TikTok’s immense popularity creates another unique dilemma. With over 150 million users in the U.S., the app is more than just a platform for entertainment — it has become a key tool for creativity, connection, and commerce, particularly among younger Americans and small businesses. This widespread use complicates the conversation, as any decision about TikTok’s future will inevitably affect millions of people who rely on it for various purposes.

However, the app’s popularity should not outweigh the national security concerns it poses, particularly given its ties to the Chinese government. ByteDance’s well-documented connections to the Chinese government have heightened fears in Washington about the potential misuse of TikTok’s data collection capabilities. These risks are not speculative — they reflect patterns of behavior consistent with Chinese state-sponsored cyber activities. Allowing donor-driven priorities to eclipse these legitimate security concerns undermines public trust in the policymaking process and erodes confidence in government institutions.

This situation raises a critical question: What other national priorities might be sacrificed to appease donors with outsized influence? If decisions about TikTok — an app that elicits bipartisan concerns about its national security implications — can be swayed, what does this mean for other pressing issues like energy policy, defense, or trade? The stakes are far too high to let financial interests dictate public policy outcomes.

Americans deserve a government that treats national security as a top priority and not one that is negotiable or secondary to the interests of private wealthy donors.

—By Dewardric McNeal, managing director & senior policy analyst at Longview Global and CNBC contributor, who served as an Asia policy specialist at the Defense Department during the Obama administration.

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Bitcoin jumps to new record above $109,000 as traders cheer Trump inauguration, meme coins

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Bitcoin jumps to new record above 9,000 as traders cheer Trump inauguration, meme coins

Jakub Porzycki | Nurphoto | Getty Images

Bitcoin hit a new all-time high overnight after the incoming first couple launched a pair of meme coins and as traders await the inauguration of incoming President Donald Trump.

On Monday the flagship cryptocurrency was last higher by nearly 1% at $106,622.54, according to Coin Metrics. Earlier, it rose as high as $109,350.72, after briefly dipping below the $100,000 mark Sunday.

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Bitcoin hits a new record ahead of Trump inauguration

Over the weekend, Trump launched the “Official Trump” meme coin, which has risen to a $10.6 billion market cap and surged more than 659% since Friday night, according to data from CoinGecko and Coinbase. On Monday it was down about 27% from its record price of around $73 a coin, after returning First Lady Melania Trump launched her own “Melania” meme coin Sunday — nearly halving the Trump coin in value at one point.

Melania Meme, which began trading Sunday evening, has hit a $1.3 billion market cap and 14% price increase since its launch. It has attracted $7.3 billion in trading volumes over the last day, compared to the Trump meme’s $31 billion.

Although meme coins are considered the riskiest corner of the already risky cryptocurrency market, the Trumps’ coin launches over the weekend gave traders further conviction that the incoming administration will be positive for the industry.

“The move highlights President Trump’s embrace of crypto and belief that Americans should have the freedom to operate in the emerging asset class,” said Joel Kruger, market strategist at LMAX.

“There is a logic here that would suggest that putting a stamp of approval on what could be perceived as the wildest of crypto assets, meme coins, is the best way to send a message of just how supportive the market should expect the administration to be when it comes to embracing crypto and making America a major player in the space.”

Noelle Acheson, economist and author of the “Crypto is Macro Now” newsletter, echoed that sentiment, calling the meme drops net positive and “a sign he is very much in favor of new ideas [and] new markets.”

Bitcoin started gaining steam last week as speculation started to build that Trump might announce an executive order on crypto early in his new term. Gracy Chen, CEO crypto exchange Bitget, said that optimism is having a greater effect on its price.

“Rumors that cryptocurrency may be declared a national interest by the United States during the inauguration are having a positive effect on the price of bitcoin,” she told CNBC. “I don’t believe the rise in bitcoin’s price is due to the launch of new meme tokens. Rather … without the release of the Trump family tokens, bitcoin’s price would have grown more. Instead, capital shifted to new coins, limiting overall growth.”

The broader crypto market, as measured by the CoinDesk 20 index, fell 1% on Monday and has gained less than 1% since Saturday. The token tied to Solana is down more than 7% on Monday but up 15% since Saturday, benefitting from the Trump meme coin being launched on the popular Ethereum alternative network. Ether has lost 5% since Saturday.

Bitcoin’s new record opens the door to a possible upside extension to $130,000, LMAX’s Kruger added.

Don’t miss these cryptocurrency insights from CNBC Pro:

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TSMC is confident its CHIPS Act funding will continue under Trump, says CFO Wendell Huang

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TSMC is confident its CHIPS Act funding will continue under Trump, says CFO Wendell Huang

TSMC Arizona’s first chip fab on November 7, 2024

Katie Tarasov

U.S. President-elect Donald Trump has accused Taiwan of “stealing” his country’s chip industry. But Taiwan’s biggest chip company is confident the Trump administration will continue funding its projects in the U.S.

Taiwan Semiconductor Manufacturing Co has been promised $6.6 billion under the Joe Biden administration’s CHIPS and Science ACT to help build three cutting-edge chip fabrication plants in Arizona as part of U.S. efforts to onshore chip manufacturing.

Speaking to CNBC’s Emily Tan in an exclusive interview, TSMC Chief Financial Officer Wendell Huang said the funding was expected to continue to roll in gradually under Trump as the fabrication plants pass construction and production milestones. 

“As a matter of fact, in the fourth quarter, we already received the first batch of government support,” Haung said, revealing the contract chip manufacturer had got $1.5 billion in funds. 

Following some production delays, the first fabrication plant in Arizona started producing advanced chips in the fourth quarter of last year, Huang said. He added that the construction of two plants in Arizona was on track, with the second expected to be operational in 2028.

TSMC’s first investment in Arizona was announced in May 2020, with the company’s total investment in the its three projects there eventually standing at over $65 billion.

TSMC is the 'only game in town' for AI chips: Analyst

Much of the investments were committed after the Biden administration signed the bipartisan CHIPS Act in August 2022, committing almost $53 billion to invest in the domestic semiconductor supply chain and counter China.

While the incoming President is also expected to make competition with China and onshoring manufacturing a priority in his second term, there has been debate as to whether Trump and the Republican-led House would re-examine the CHIPS Act. 

During his campaign for the White House, Trump publicly criticized the bill and its price tag, arguing instead that tariffs were a more effective strategy to onshore chip manufacturing. The President-elect also accused Taiwan of “stealing” U.S. chip business.

However, industry experts have told CNBC that they expect Trump to leave the policy mostly intact due to its bipartisan support in Washington. 

TSMC on Thursday reported record profit for the fourth quarter on strong demand for its AI chips, sending its shares up nearly 4%. Shares closed 1.36% higher on Friday.

In an earnings call following the esults, CEO and Chairman C.C. Wei highlighted TSMC’s “long-standing and good relationship” with the U.S. government and the commitment and support it has received on the federal, state and city levels. 

“Let me assure you that we have a very frank and open communication with the current government and with the future one also,” he said in response to an investor question. 

On Thursday, Wei also said that the company would not attend Trump’s inauguration as it prefers to keep a low profile.

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TikTok restoring U.S. service after Trump provided ‘assurance’

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TikTok restoring U.S. service after Trump provided ‘assurance’

Dado Ruvic | Reuters

TikTok was available to some U.S. users on Sunday after President-elect Donald Trump said that he would sign an executive order on Monday to delay a federal ban of the app.

In a statement on X, the company wrote that it would bring back access to its American users.

“In agreement with our service providers, TikTok is in the process of restoring service,” TikTok wrote. “We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.”

The decision is “a strong stand for the First Amendment and against arbitrary censorship,” the company added. “We will work with President Trump on a long-term solution that keeps TikTok in the United States.”

This came after Trump wrote on his social media app Truth Social he would “issue an executive order on Monday” to extend the period of time before the ban was set to take place.

“I’m asking companies not to let TikTok stay dark!” Trump wrote on Sunday morning.

Although TikTok was shut down for American users late Saturday night, and also removed from Apple and Google’s app stores, some were able to log on to the platform on Sunday through their desktops.

This is a breaking news story. Please check back for updates.

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