'Speech that demeans on the basis of race, ethnicity, gender, religion, age, disability, or any other similar ground is hateful; but the proudest boast of our free speech jurisprudence is that we protect the freedom to express “the thought that we hate.”' - SCOTUS opinion for Matal v Tam, June 2017

There's no "hate speech" exception to the First Amendment of the U.S. Constitution. GoDaddy here, however, is probably free to deny service but not free to take their US TLD away from them.

There is probably an interesting discussion about US TLD's here, though, and property rights inherent to them. On any other TLD, the domain would have probably been seized long ago. But, given the climate, it's clear that this discussion is not going to happen.

In the US, hate speech is free speech. Other countries ,especially those in the EU, have different definitions; individuals are also free to form their own definitions.

However, it is very dangerous for government to suppress speech, especially if it's speech that the majority of people find distasteful. Let the court of public opinion try those who speech hateful speech, but not the court of law. Certainly, some speech is unlawful, namely incitement to criminal actions, specific threats, and copyright infringement.