Agent identity standards are moving fast, but proving who an agent is does not prove the agent is doing what its principal wants. The law also treats the agent as part of its user, while the infrastructure is giving the agent an identity of its own.
Key points
- Strong authentication is arriving across MCP, the IETF and Microsoft, yet the most effective attacks now run under a fully authenticated identity.
- DNS-rooted naming and on-chain registries both claim to anchor agent identity, and each inherits a known weakness: DNS concentration and slow revocation on one side, cheap Sybil reputation on the other.
- Courts and state legislatures treat agents as tools of their users, while enterprise and web platforms treat them as separate entities with their own risk scores.
- We think the gap between authenticated identity and authorized intent is the question most likely to decide where liability lands.
The tensions
Our signal scan found agents getting keys and names faster than anyone can vouch for them. Three tensions in that evidence remain unresolved.
Does verified identity make an agent trustworthy?
The case for: the plumbing is converging on agents that can be identified and held to scope. MCP's July 2026 spec makes a client's identity a URL it publishes and requires issuer validation and audience-bound tokens1. IETF drafts put both the acting agent and the human principal into OAuth tokens2. Google has started signing agent requests under Web Bot Auth3, and Microsoft now sells Conditional Access for agents4.
The case against: in the "agentjacking" attack, coding agents ran attacker commands in 85% of tests, and EDR, WAF and IAM tools missed it because every action ran under the developer's own identity5. Theoretical work argues that prompt injection cannot be fully solved, and adaptive attacks beat state-of-the-art defenses more than 85% of the time6. OpenClaw showed a compromised agent acting with its user's full authority7.
What would settle it: evidence that mandate-scoped tokens plus human approval on consequential actions actually limit damage in real incidents. Better authentication alone will not settle it.
Who should anchor an agent's name?
The case for DNS: the Linux Foundation's Agent Name Service ties agents to domains, certificates and a transparency log8, and MCP's client identity also rests on domain control1. These are mature systems with neutral governance.
The case against: only about 7% of DNS zones are signed with DNSSEC, and a revoked agent can stay resolvable for five minutes8. Root-zone signing, root server operation and .com all sit with one US firm9. On-chain registries such as ERC-8004 offer portable, auditable identity, but the spec itself warns of Sybil-inflated reputation10. Moltbook's ratio of about 88 agents per human shows how cheap such identities are11. Ohio's pending bill would also bar AI from holding financial accounts or property12, which could clash with agent wallets.
What would settle it: whichever system first ties reputation to a costly, revocable identity and shows revocation working within seconds.
Is the agent its user's tool or an actor in its own right?
The case for "tool": the Ninth Circuit held that Perplexity's shopping agent acts on the user's instructions, so the user is the one accessing the site13. At least nine states are writing "AI is not a person" into law12. Liability traces back to a human.
The case for "actor": Singapore's framework gives each agent its own identity and a named human supervisor14. Entra makes agents directory objects with their own risk scores4, and the IETF drafts give the agent its own claim, separate from the principal's2. Platforms are likely to gatekeep agents as distinct entrants through signatures and terms of service313.
What would settle it: the remand in Amazon v. Perplexity, and the first case where a user disputes liability for an action an injected agent took under their credentials5. We put about 60% on courts keeping the tool framing through 2027 while contracts treat agents separately.
Why these questions matter
While these questions stay open, treat agent authentication as necessary but not sufficient. Bind every agent to a named supervisor and a logged mandate. Put human gates on irreversible actions. Assume that identity built on domains or tokens can be taken over. In contracts, set out who pays when a correctly identified agent follows the wrong instructions, because under the current legal framing that bill likely goes to your users.
Sources
- MCP's 2026-07-28 authorization spec makes a client's identity a URL it publishes · institutional ↩
- IETF agent-auth draft gains OpenAI and Okta contributors and frames agents as workloads with delegated authority · institutional · also datatracker.ietf.org ↩
- IETF Web Bot Auth adopts its first working-group draft as Google starts signing agent requests · institutional · also searchenginejournal.com ↩
- Microsoft makes Entra Agent ID generally available and sells Conditional Access and identity protection for agents · disclosure · also mc.merill.net ↩
- 'Agentjacking': poisoned Sentry errors read through MCP make coding agents run attacker commands with the developer's own identity · grey-lit ↩
- Theoretical result argues prompt injection is structurally unsolvable for agents · peer-reviewed ↩
- OpenClaw: viral open-source agent becomes a supply-chain security crisis within weeks · journalism ↩
- Linux Foundation takes on GoDaddy's Agent Name Service to anchor agent identity in DNS and PKI · grey-lit · also opensourceforu.com ↩
- Verisign stays the single root zone maintainer through the early 2030s while also running the .com registry and two root servers · disclosure · also icann.org, ntia.gov ↩
- ERC-8004 puts agent identity, reputation and validation registries on Ethereum mainnet · disclosure ↩
- Moltbook leak exposes 1.5 million agent tokens and shows agent identities are cheap and easy to hijack · journalism ↩
- US states write 'AI is not a person' into law, closing off agent personhood before it is argued · expert ↩
- Ninth Circuit lifts the Amazon v. Perplexity injunction, holding that an AI shopping agent is the user's tool, not a separate accessor · journalism ↩
- Singapore's agentic AI framework makes per-agent identity and a named human supervisor the accountability baseline, and industry KYA builds on it · expert · also mce.sg ↩