President Joe Biden has passed a law that would force TikTok's Chinese owners to sell its regional operations or be banned.
The bill, passed as part of a wider $95bn package that provides foreign aid to Ukraine and Israel, was approved by the Senate earlier this week.
The bill gives ByteDance nine months to sell the social media platform, with the possibility of a three-month extension to finalize a deal. However, ByteDance has repeatedly said that it would challenge such a ruling in court, which could extend the deadline or reverse the ban.
The company, which made $16bn in revenues in the US last year, has said that a ban would be a violation of its users First Amendment rights. It claims that 170 million US residents use its short-form video app.
TikTok currently uses Oracle Cloud to host its US operations, a decision that resulted from former President Donald Trump's efforts to force a sale.
During that previous attempt, Oracle and Walmart nearly bought the company, while Microsoft also put in a bid.
A ban also risks sparking retaliation from China, which earlier this month banned app stores from offering apps like WhatsApp and Threads on national security grounds.
This article has been updated to include that Biden has now signed the bill