A fast-spreading theory has sparked intense debate across the crypto industry, claiming the U.S. Securities and Exchange Commission could settle its lawsuit with Ripple by accepting XRP tokens instead of cash.
This speculation gained momentum after social media influencer John Squire posted a detailed thread on X, suggesting the SEC’s recent moves may not be as routine as they appear.
According to Squire (@TheCryptoSquire), there is growing chatter that the SEC may be holding off on approving XRP spot ETFs for a specific reason. He points out that if the SEC is planning to accept XRP as part of a settlement with Ripple, allowing a spot ETF now could trigger a sharp increase in the token’s price.
The surge would diminish the SEC’s negotiating power and make the potential settlement more costly. Hence, the SEC may have strategically extended the ETF decisions to be able to reach a conclusion with Ripple on the mode of settlement.
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Squire referenced an analysis from @JadedInvesting, which stated that the SEC could avoid initiating any steps that might enhance demand for XRP until the court reaches a settlement point.
Spot ETFs differ from futures-based ones because they directly purchase XRP, thus driving up demand, which puts more price pressure on the market.
What if the SEC actually accepts XRP as payment?
There’s a hot theory going around: If the U.S. Government settles with Ripple and accepts $XRP instead of cash, that could explain why ETF approvals are being delayed.
Let’s break it down. 🧵 pic.twitter.com/vJajUibTB5
— John Squire (@TheCryptoSquire) April 30, 2025
The speculation peaked after Fox Business journalist Eleanor Terrett reported that the SEC extended Franklin Templeton’s proposed XRP ETF response until June 17. Squire linked the delayed timing to the circulating theory, questioning if regulatory processes were involved or if this marked a calculated plan.
Why This Matters for Ripple and the Crypto Market
Accepting XRP as settlement would imply that the SEC no longer considers it an illegal asset. Such a decision could open the door for institutional adoption, providing much-needed regulatory clarity. It could also shift public and legal perception around the asset, reinforcing its position as a legitimate digital currency.
The move would establish an important distinction from the SEC’s current direction in crypto regulatory methods. The adoption of XRP as a payment method stands to affect ongoing legal proceedings concerning digital assets throughout the market.
Currently, XRP trades at $2.21, representing a 0.15% spike in the last 24 hours, with a market cap of $128.5 billion. The idea of the SEC settling with Ripple using XRP has added a new layer of intrigue to an already high-profile case.
While nothing has been confirmed, the timing of ETF delays and market reactions continues to fuel speculation about what may lie ahead.
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