As does NameCheap and pretty much every other registrar.
Here is the relevant text for NameCheap:
Namecheap may also cancel the registration of a domain name, after thirty (30) days, if that name is being used, as determined by Namecheap in its sole discretion, in association with spam or morally objectionable activities.
Morally objectionable activities will include, but not be limited to 1) activities designed to defame, embarrass, harm, abuse, threaten, slander or harass third parties; 2) activities prohibited by the laws of the United States and/or foreign territories in which you conduct business; 3) activities designed to encourage unlawful behavior by others, such as hate crimes, terrorism and child pornography; 4) activities that are tortious, vulgar, obscene, invasive of the privacy of a third party, racially, ethnically, or otherwise objectionable; activities designed to impersonate the identity of a third party; 5) and activities designed to harm or use unethically minors in any way.
Here is the relevant text for NameCheap:
Namecheap may also cancel the registration of a domain name, after thirty (30) days, if that name is being used, as determined by Namecheap in its sole discretion, in association with spam or morally objectionable activities.
Morally objectionable activities will include, but not be limited to 1) activities designed to defame, embarrass, harm, abuse, threaten, slander or harass third parties; 2) activities prohibited by the laws of the United States and/or foreign territories in which you conduct business; 3) activities designed to encourage unlawful behavior by others, such as hate crimes, terrorism and child pornography; 4) activities that are tortious, vulgar, obscene, invasive of the privacy of a third party, racially, ethnically, or otherwise objectionable; activities designed to impersonate the identity of a third party; 5) and activities designed to harm or use unethically minors in any way.