I did some more digging and found out that ICANN has tremendous legal power.
After September 30 ICANN could defer to international law rather than US law.
What happens then?
They alter their Registry Operator Code of Conduct and Obama says he has ‘no controlling legal authority’ since it’s based on treaties. So he is ‘forced’ to accomodate them with Justice Department assistance, federal compliance, etc.
This could even affect military websites under Obama’s watch and [God forbid] Hillary’s watch.
That is a real risk with the potential for multiple bad things happening.
I concede.
Still I think as long as they are on US soil they are subject to US law unless protected by a treaty that I don't think exists...yet.