The funny thing is that we already have national TLDs. And many of them require that a person or company is a citizen/resident of the nation before they can register an address there.

but the gTLDs were in a sense in legal limbo for a long time. On paper they were always US controlled, but anyone anywhere could register there.

But then more recently we have seen sites takes down by the FBI and similar even though both the physical servers and the owner are located abroad. This simply by having the registrar reassign the DNS entry to an FBI page.