TikTok parent company ByteDance is reportedly preparing to roll out a U.S.-specific version of its popular video-editing app CapCut, according to a new report from Business Insider.
The move may be part of ByteDance’s broader strategy to comply with a 2024 U.S. law that requires the company to divest from TikTok and other American assets or face a potential nationwide shutdown. ByteDance is also said to be working on a dedicated version of TikTok for U.S. users ahead of an anticipated sale of the app to a group of American investors.
CapCut has already become a massive hit, with over 1 billion downloads on the Google Play Store, and currently ranks as the top photo and video app in the U.S. iOS App Store—surpassing even Instagram and YouTube.
While ByteDance has not disclosed whether similar U.S.-specific versions will be developed for its other platforms like Lemon8 and Gauth, it is confirmed that the company plans to launch a new U.S.-only version of TikTok, along with its video editor under a new name: “CapCut US.”
This transition comes in the lead-up to a planned divestiture, in accordance with the law signed by former President Joe Biden and upheld by the Supreme Court, which mandates that Chinese-owned tech firms divest U.S. operations or be banned. ByteDance has until September 17 to sell off TikTok’s U.S. operations.
TikTok’s U.S.-specific app is expected to hit app stores by September 5, with the current version set to phase out completely by March 2026, pending the outcome of the sale. The company hopes the shift will help preserve its large American user base while easing legal and political scrutiny.
The Trump administration has ramped up efforts to enforce the divestiture. On July 4, President Donald Trump said discussions with Beijing regarding a TikTok deal would begin the following week. However, by July 7, China had brushed off questions about Trump’s claim that he “pretty much” had a deal in place.
“China has reiterated its principle and position on issues related to TikTok on multiple occasions,” said Mao Ning, spokesperson for China’s Foreign Ministry.
ByteDance’s legal clock is ticking, with the September deadline looming. Although the original enforcement date was set for January, it has been delayed several times by Trump. Still, the mandate stems from national security concerns and aims to remove Chinese ownership from platforms with deep U.S. user penetration.
When asked about the sale, China’s Foreign Ministry urged the U.S. to provide an “open, fair, just, and non-discriminatory business environment” and reiterated that “business acquisitions should be independently decided by companies based on market principles.” So far, Beijing has shown little indication that it supports a forced divestiture.
In the U.S., TikTok continues to be a digital juggernaut with over 170 million monthly active users. A Pew Research Center report revealed that more than 60% of American teens and nearly one-third of U.S. adults use the app for everything from entertainment to income generation.
Meanwhile, CapCut has become a must-have editing tool for both casual users and content creators, known for its viral video templates and user-friendly interface. It remains a key part of ByteDance’s U.S. presence, dominating both Android and iOS app rankings.
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