The measure comes amid concerns that the firm's Chinese ownership could pose a threat to US national security.
The short-video app is hugely popular with young people and has an estimated 170 million users in the US, reports DW.
What does the bill aim to do?
Lawmakers supporting the bill allege that ByteDance is beholden to China's Communist Party leadership, which they fear could demand access to the data of US users.
The bill, officially called the "Protecting Americans from Foreign Adversary Controlled Applications Act," requires ByteDance to divest within 180 days. Failure to comply would result in TikTok being barred from Apple and Google app stores in the US.
The legislation would also give the president power to designate other apps to be a national security threat if under the control of a country considered to be adversarial to the US.
While the bill passed easily in the House, its fate is less certain in the Senate.
The White House has said that US President Joe Biden would sign the bill into law if it's approved by Congress.
It's not the first time the US has tried to crack down on TikTok. In 2020, an attempt by former President Donald Trump to ban the app was blocked by the courts after TikTok sued, citing free speech concerns.
How has TikTok responded?
A TikTok spokesperson called the bill a "ban" and appealed to lawmakers in the Senate not to rush the process.
"This process was secret and the bill was jammed through for one reason: It's a ban. We are hopeful that the Senate will consider the facts, listen to their constituents, and realize the impact on the economy, seven million small businesses, and the 170 million Americans who use our service," the spokesperson said.TikTok has strongly denied any ties to the Chinese government. Its CEO Shou Zi Chew was in Washington on Wednesday in a bid to shore up support to block the bill. The company also says it has undergone a restructure so that the data of US users does not leave the country.
Meanwhile, Beijing warned the move would "inevitably come back to bite the United States."
"Although the United States has never found evidence that TikTok threatens US national security, it has not stopped suppressing TikTok," Foreign Ministry spokesperson Wang Wenbin said, condemning what he described as "bullying behavior."