According to PANews, the US Securities and Exchange Commission (SEC) rejected Ripple Labs' latest arguments to reduce its fines, insisting on a total penalty of around $2 billion. This includes $198.2 million in pre-judgment interest, $876.3 million in civil penalties, and another $876.3 million in recoveries. Last month, Ripple tried to hide part of its financial information, but the SEC opposed this, believing that the company should disclose revenues obtained through XRP.

Last week, Ripple proposed to Judge Analisa Torres of the New York District Court to impose a fine “not to exceed $10 million,” much less than the $876.3 million civil penalty proposed by the SEC. Ripple cited the SEC's settlement agreement with Terraform Labs as the basis. However, in its response, the SEC emphasized that its settlement with Terraform was based on the bankruptcy of the company, an agreement to recover funds, and the dismissal of the responsible persons involved, actions that Ripple did not take.

The SEC said that Ripple's fine should be calculated based on gross profit from its violations, not gross sales. If the Terraform penalty rate (close to 12%) were applied to Ripple, the fine would have to be $102.6 million. The SEC believes that such a low fine cannot meet the purpose of the civil penalty regulations. Since the SEC accused Ripple of selling unregistered securities in 2020, the two parties have been arguing in court. Judge Torres affirmed Ripple's illegal conduct, but only when selling to institutional investors. Currently, the legal battle between the two parties continues.