According to U.Today, the ongoing legal dispute between Ripple Labs and the United States Securities and Exchange Commission (SEC) has taken a new turn. The SEC has filed its response to Ripple Labs' accusations of demanding unreasonable settlement charges. Ripple had previously compared its case to that of Terraform Labs, arguing that the SEC's fine was disproportionately high given that no users suffered any loss in their case, unlike in the Terraform ecosystem token collapse.
In response, the SEC is asking the court to approve a $2 billion settlement for Ripple's alleged violation of securities law when it sold XRP to institutional investors. Ripple, however, is contesting this proposed fine, arguing that it should not pay more than $10 million. The SEC has countered that its charges are typically agreed upon on a case-by-case basis. It also pointed out that Terraform Labs' charges were lower due to several factors, including the company's bankruptcy status and lack of liquidity to pay a higher fine.
The SEC further noted that while Terraform Labs agreed to cease the actions that led to the violations, Ripple Labs has continued the same actions that prompted the lawsuit. The decision on the appropriate remedy is still pending in court. Meanwhile, Ripple Labs has continued to expand its business with a stablecoin update and a partnership with Archax.
The final decision could have significant implications for other SEC-related cases that may require settlement.