The American Arbitration Association (AAA), Integra Ledger, and a coalition of companies have announced the launch of the Legal Context Protocol (LCP) — an open standard for transactions between AI agents.
AI agents are transforming the future of commerce, helping people and organizations form agreements, execute services, and move value with greater speed and efficiency. But participants need to trust that transactions are understandable, accountable, and resolvable when disputes arise… pic.twitter.com/BpZYY5Jqen
— American Arbitration Association (@ADRorg) June 24, 2026
The LCP aims to establish the legal terms of transactions, consent of the parties, and dispute resolution procedures in scenarios where AI agents make agreements on behalf of individuals and organizations.
The protocol is designed as a "legal layer" over payment, identification, and agent coordination solutions. The AAA has identified systems such as x402, Machine Payments Protocol, Trusted Agent Protocol, A2A, and Verifiable Intent as part of this framework. These systems handle the technical aspects, while the LCP addresses the terms of the deal, applicable law, and potential dispute resolution processes.
According to the AAA, the standard does not require blockchain, intermediaries, or special infrastructure: any organization with a web server can implement it. The specification, reference implementation, and integration examples have been published under the Apache 2.0 license. Project management is expected to be transferred to a neutral foundation.
Founding participants of the project include Google, IBM, Circle, Wayfair, Stellar Development Foundation, Ava Labs, UiPath, Cardano, Hedera, Crossmint, Pinata, Aptos Foundation, Baselayer, Trinsic, First Person Cooperative, Sei Labs, and Mysten Labs.
Bridget McCormack, President and CEO of the AAA, noted that the legal infrastructure for e-commerce over the past 20 years has not been focused on transactions between AI agents.
David Fisher, CEO of Integra Ledger, described the LCP as a necessary legal layer for new solutions. Mance Harmon, co-founder of Hedera, emphasized that as agents become more autonomous, a clear response is needed if "something goes wrong."
Founded in 1926, the AAA is the world's largest private provider of alternative dispute resolution services.
The association forecasts that by 2028, 90% of B2B purchases will be made by AI agents, with spending in this area exceeding $15 trillion.
In June, U.S. Democrats called on the Securities and Exchange Commission to enhance oversight of AI trading.