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ICANN dismised their application on February the 19th.

gTLD (generic top-level domain) for sexually explicit material was proposed as one tool for dealing with the conflict between those who wish to provide and access such material through the Internet, and those who wish to prevent access to it, either by children and adolescents, or by employees at their workplaces.

Advocates of the idea argue that it will be easy for parents and employers to block the entire TLD, rather than using more complex and error-prone content-based filtering, without imposing any restrictions on those who wish to access it.

Critics of the idea argue that because there is no requirement for providers of explicit content to use the TLD, sexually explicit material will still be commonplace in other domains, making it ineffectual at restricting access, and simply creating a new “landrush” as registrants of .com domains hosting explicit material attempt to duplicate their registrations in the .xxx domain, competing with operators who hope to register desirable names unavailable in other TLDs. There is also concern that the existence of .xxx will lead to legislation making its use mandatory for sexually explicit material, leading to legal conflicts over the definition of “sexually explicit”, free speech rights, and jurisdiction. RFC 3675, entitled “.sex Considered Dangerous”, discusses some of these objections. Meanwhile, the United States Department of Commerce has objected to the creation of this domain in response to complaints that it would legitimize pornography.[3] This has been backed by many conservative Christian groups in America such as the American Family Association.

Some of the objections to an .xxx domain (for instance the difficulty of legislating consistent world-wide morality) would be mitigated if the domain was a subdomain of a country-specific domain. As of May 2006, the “xxx.us” domain exists, and is for sale according to its WHOIS entry.[4]

ICANN approved a proposal by ICM Registry, Inc. to implement .xxx as a sponsored top-level domain. ICM said it would charge $60/year for domains. The process for registrations was not immediately disclosed. In December 2005, discussions about the implementation of .xxx were taken off the agenda of ICANN Governmental Advisory Committee, placing its future in doubt; in its March 2006 meeting, the GAC formulated a letter of concern to the ICANN board about .xxx.

Considering all this, the ICANN board revoked its approval on May 10, 2006.

However, the establishment of such a domain name remains possible, as United States Senators Max Baucus (D., Montana) and Mark Pryor (D., Arkansas) have proposed to mandate its creation through legislation; it is unclear how such legislation could place a binding obligation to establish .xxx on ICANN without jeopardizing the argument that ICANN is not a US-controlled body.

On January 5, 2007, ICANN put up for public comment a revised proposal[5] following changes to the policy of the ICM registry including the policing of any site that signs up to use the .xxx registry.[6] On March 30, 2007, ICANN rejected the .xxx proposal for the third time, citing that the board would did not want to get in the business of content regulation, especially when the definition of “pornography” varies by jurisdiction. Other groups have spoken out against the domain as well. Adult website owners feel the exclusive domain for their sites would turn adult websites into an “online ghetto.” Religious leaders, on the other hand, fear it would “legitimize and expand” the number of adult websites. ICM was quoted as saying they would “likely” file a lawsuit against ICANN