The National Association of Secretaries of State is an organization of the Secretaries of State of the 50 states. They’re concerned that .INC, .LLC, .LLP or .CORP domains might be issued to entities that didn’t have those actual business registrations.
In 1998 there were various requests for comments with regard to increasing the name space. The majority of the commenters (and the ultimate applicants) were dazzled by the then-monopoly profits of NSI, and suggested (and fought over) extensions such as .WEB, because they wanted to be monopolists as well, selling extensions that would have the broadest possible market. The Trademark Lobby was concerned by cyber-squatting. So we wound up with .BIZ and .INFO, and sunrise periods and so on.
I submitted a comment at the time that if we accepted the premise that there was in fact a name shortage that was crippling businesses, then we could start with already unique lists, and alleviate some of the shortage. There was only one EXAMPLE LLC of California, and one EXAMPLE LLP in NY, and so on. So structure TLDs according to state and entity type. Several million names could be created without legal conflict.
So here we are.