A dramatic turn in the long-standing legal standoff between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reignited hope across the crypto community. After years of courtroom drama, both parties have hit pause on their appeals to engage in settlement discussions—signaling a possible resolution that could finally clear the path for Ripple’s native token, XRP, to break free from legal uncertainty.

This new phase began with a joint filing submitted on April 10, in which Ripple and the SEC agreed to suspend ongoing appeals to explore the possibility of reaching a settlement. The filing immediately raised widespread speculation, not only because of what it could mean for Ripple's future but also for the broader regulatory climate around digital assets in the United States. Notably, Ripple was no longer required to respond to the SEC’s latest legal brief, which had been due on April 16, underscoring that both sides are now prioritizing dialogue over litigation.

Adding fuel to the fire is a significant change at the helm of the SEC. On April 9, Paul Atkins was officially confirmed by the Senate as the new SEC Chair. Known for his more industry-friendly views on crypto regulation, Atkins’ arrival has led many to believe that the regulatory tone might shift under his leadership. Some even speculate he may be open to resolving the Ripple case entirely—either through settlement or by pulling the SEC out of the fight altogether.

Well-known crypto analyst John Squire added to the buzz with a social media post outlining why he believes this pause in legal proceedings is more than procedural—it’s strategic. He pointed to recent signs that institutional players are quietly preparing for a major development. Activity from high-value wallets and increased movement from large crypto holders, or “whales,” suggest to him that insider expectations of a favorable outcome are growing.

Squire also highlighted April 16 as a potential game-changer. That date was originally when Ripple was expected to respond to the SEC’s legal brief. Now, with settlement talks underway, the absence of that filing may mark a significant milestone instead of a procedural delay. If a settlement is declared, it could remove the biggest obstacle standing in XRP’s path for years: regulatory ambiguity. And with that uncertainty gone, the door to large-scale institutional investment—long hesitant due to legal risks—could finally swing open.

The implications for XRP’s price and future are significant. Analysts agree that a settlement would likely be bullish for XRP, both in the short term and long term. Removing the legal overhang would also strengthen the case for an XRP exchange-traded fund (ETF), which is already gaining traction. Several major financial firms—including Grayscale, Bitwise, and 21Shares—have filed applications for spot XRP ETFs, and ProShares recently joined the list by filing for its own XRP ETF, indicating deepening institutional interest.

There’s growing belief that a settlement could fast-track the approval of these funds. Squire emphasized that ETF issuers and institutional players typically act ahead of major moves—not after. “When institutions start positioning ahead of time, it’s because they know what’s coming. And what’s coming might be one of the most important validations the crypto space has seen in a long time,” he said.

Hints of a resolution have been circulating for weeks. Ripple CEO Brad Garlinghouse stated in March that the lawsuit could be close to its conclusion. The latest court developments seem to support his prediction. Legal experts like attorney Fred Rispoli have also suggested a high probability of a settlement, or even a complete withdrawal of the case. In fact, Rispoli recently placed the odds of Ripple filing another appeal at just 10%, while suggesting a 90% chance that either a settlement or full case dismissal could happen instead.

Meanwhile, XRP’s price remains highly sensitive to legal news and broader market dynamics. At the time of writing, XRP is trading at $2.06, reflecting a 3.9% decline on the day. Analysts caution that while bullish momentum could return quickly following a settlement, downside risk still exists. If talks were to break down or macroeconomic pressures persist—such as the ongoing U.S.-China trade tensions—XRP could face another dip, potentially retesting support around $1.70.

Still, market watchers believe that a resolution of this lawsuit would lift a heavy cloud from XRP and its investors. Beyond the potential price rally, the most impactful result would be the removal of legal risk that has hung over Ripple since late 2020. For years, the SEC’s classification of XRP as an unregistered security has made it difficult for major institutions to engage with the asset. With that barrier potentially gone, XRP could be poised to re-enter the portfolios of large funds and traders.

While it’s too soon to declare the legal battle over, April 16 may be remembered as a key moment in Ripple’s journey—one that could mark the end of regulatory limbo and the beginning of a new era of legitimacy for XRP. Whether through a formal settlement, case withdrawal, or policy shift under the SEC’s new leadership, Ripple appears closer than ever to reclaiming its place as one of the most important projects in the crypto space.