Why legal rights cannot be generated by software
An algorithm can be tested and reproduced. A file's bytes can be signed and compared. A public catalogue can show an issuer's statement about an invention. None of those actions automatically gives the issuer the legal right to sell it. Legal title may depend on employment, assignment, confidentiality, copyright, patents, licences, privacy and the rights of contributing organizations.
Likewise, a database entry saying someone owns 1,000 investment units is not enough to establish that the units were lawfully issued shares. The governing corporate documents, statutory or authorized registers, investor eligibility, source of funds and applicable securities regime matter. A wallet should reflect legal reality rather than attempt to replace it.
This is not a weakness in the concept; it is the architectural reason ENTITY, ADAM, Verifiable Reality and the separate financial registries exist. The system is engineered to make such boundaries explicit so autonomous software cannot create legal or financial authority merely by calling a convenient API.