# kaal:claim:7314479-005

**Claim.** State is user-held only if the operator cannot read the user's working state without the user's participation; an operator that holds decryption capability holds the data regardless of marketing claims about ownership.

**Type.** condition  **Support.** argued

**Holds when.**

- the second class-defining property, user-held state

**Source quote.**

> The test is whether the operator can read the user's working state without the user's participation. A system in which the operator holds decryption capability holds the data, whatever the marketing says about ownership.

**From.** Wulf A. Kaal, *Institutional Requirements for Sovereign Local Agent Runtimes* (2026), II. The Sovereign Local Agent Runtime as a Class of System, page 5

**Cite as.** Wulf A. Kaal, Institutional Requirements for Sovereign Local Agent Runtimes (2026). SSRN: https://ssrn.com/abstract=7314479

**Verify.** sha256 of source PDF `debace24a155ae924a155b1fafe98856d98cf83689feff2f87a32f1c06171ce6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20Institutional%20Requirements%20for%20Sovereign%20Local%20Agent%20Runtimes.pdf

**Topics.** ai-and-agents, institutional-design, decentralization

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