The US Securities and Exchange Commission (SEC) has responded to Ripple's attempt to use the Terraform Labs settlement as a defense against a proposed $2 billion fine. Ripple argued that the SEC's fine was excessive compared to Terraform Labs' penalty. However, the SEC criticized Ripple's comparisons, stating that the situations were different as Terraform Labs had agreed to severe penalties due to bankruptcy. The SEC highlighted key differences between the cases, emphasizing that Ripple had not taken similar measures to rectify violations. The SEC also pointed out that Ripple's proposed penalty based on penalty ratios was flawed, as it did not consider gross profit. The ongoing legal battle between Ripple and the SEC dates back to 2020 when Ripple was accused of using XRP as an unregistered security. Despite a ruling that XRP is not a security in certain sales, the dispute continues over appropriate penalties for securities violations. Read more AI-generated news on: https://app.chaingpt.org/news