When Mr Postel died in 1998, the Commerce Department created Icann, a non-profit organisation based in Los Angeles which took over control of the webs crucial address list. Although Icann is nominally overseen by a selection of governmental and private stakeholders, it remains under contract from the US government.
In the short term, the changes are likely to have little effect on internet users online experience. But observers say the planned handover is a concession designed to reassure other countries suspicious of the power that the US wields over the web.
The information leaked by Mr Snowden regarding the extent of the National Security Agencys digital surveillance activities, drew criticism not only of the US government, but also of major American web businesses accused of co-operating with the NSA.
In February, the EUs digital tsar Neelie Kroes called on the US to end its oversight of the internet.
In the past, the US has resisted demands from China, Russia and other countries to cede control of the internet to the United Nations. In its handover of Icann, the administration has stipulated that the replacement oversight body must be representative of "the global multistakeholder community", and said it would not condone a "government-led or an inter-governmental organisation solution".
Some were nonetheless concerned by the prospect of a globally controlled internet. The Republican former House Speaker and presidential contender Newt Gingrich said the handover "risks foreign dictatorships defining the internet".
Yet Dr Stephen Crocker, the chairman of Icanns board, said the end of US government control was long-planned. "We have all long known the destination," he said. "Now it is up to our global stakeholder community to determine the best route to get us there."
- The Independent