ByteDance to Launch U.S.-Specific Version of CapCut Amid Regulatory Pressure

Tiktok app on a phone

TikTok parent company ByteDance is developing a U.S.-specific version of its popular video editing app, CapCut, in a move aimed at complying with mounting regulatory scrutiny and a newly enacted federal law requiring the company to divest its American assets.

According to sources familiar with the matter, ByteDance is preparing to roll out “CapCut US,” a standalone version of the global app designed specifically for American users.

The initiative mirrors the company’s parallel efforts to create a distinct U.S. version of TikTok, following the passage of the Protecting Americans from Foreign Adversary Controlled Applications Act in April 2024.

The law gave ByteDance until January 2025 to either sell TikTok and affiliated apps or face a nationwide ban. While ByteDance continues to fight the legislation in court, internal planning suggests the company is actively working on contingency strategies to avoid a disruption of services in its largest international market.

“This is part of ByteDance’s broader plan to restructure U.S. operations while maintaining a presence in the American creator economy,” said one source, speaking on condition of anonymity.

What Will CapCut US Look Like?

Although specific details are scarce, CapCut US is expected to feature many of the core video-editing tools found in the international version. However, it's unclear whether the U.S. app will be able to access the same AI-powered features, TikTok integration, or international content libraries.

ByteDance has not publicly confirmed the timeline for the app’s launch.

Internal sources suggest the company aims to release CapCut US before the end of 2025, depending on the outcome of ongoing legal challenges to the divestiture mandate.

Market Impact

The announcement has raised concerns among creators and digital marketers who rely on CapCut for seamless video production, especially given the app’s tight integration with TikTok.

Industry analysts warn that splitting the app could lead to a fragmented user experience or feature discrepancies.

Meanwhile, rivals such as Meta have reportedly accelerated development of their own AI-powered editing tools, including an app code-named “Edits,” positioning themselves to capture market share if ByteDance’s products lose favor or functionality in the U.S.

Looking Ahead

As ByteDance walks a tightrope between U.S. legal requirements and Chinese government restrictions on tech exports, the rollout of CapCut US represents a critical test of whether the company can maintain influence in American digital culture without surrendering ownership or control.

Whether U.S. regulators or the broader creator community will accept this regional workaround remains to be seen.