Digital identity systems are increasingly central to both public and private services, yet the standardisation processes underpinning them remain fragmented. This paper examines the ethical, institutional, and governance challenges that arise from the distributed nature of digital identity specification development. Drawing on an interpretive case study approach, we analyse five key communities—namely IETF, W3C, OpenID Foundation, the Decentralized Identity Foundation, and the Internet Identity Workshop—to understand how technical norms are created and how engineers and public actors engage with them. Our findings show that while formal standardisation bodies provide structured processes, public institutions face significant barriers to participation, including technical complexity, fragmented venues, and limited institutional coordination. Informal forums like Internet Identity Workshop (IIW), though inclusive in ethos, pose accessibility challenges due to their high-context structure. We argue that effective governance of digital identity standards requires new forms of coordination, interdisciplinary collaboration, and shared institutional capacity across technical and policy domains. Rather than advocating for centralised administration, we call for constructive interoperability between stakeholder communities to ensure that evolving standards align with public values and democratic oversight.