Ripple Labs is pushing back against the hefty fine proposed by the U.S. Securities and Exchange Commission (SEC) in their ongoing legal battle over XRP.

What Happened: In a filing submitted on Monday, Ripple (CRYPTO: XRP) argues against the SEC’s request for a nearly $2 billion penalty, instead proposing a civil penalty of just $10 million, Coindesk reported.

The SEC had previously urged the court to order Ripple to pay almost $2 billion, comprised of disgorgement, prejudgment interest and a civil penalty.

While the court did find Ripple violated securities laws through some XRP sales, it dismissed the SEC’s broader claims regarding XRP sales on exchanges and through algorithms.

Ripple’s lawyers strongly criticized the SEC’s proposed fine, calling it “administrative overreach.”

They argue the SEC is acting as if they had won the entire case and proven “reckless conduct” by Ripple, which they say is not the reality.

Additionally, Ripple contends the SEC is seeking disgorgement that is not legally permissible and a civil penalty far exceeding anything the SEC has obtained in a similar digital asset case.

The filing also included a redacted section detailing Ripple’s financial situation, arguing that with no net gains from the disputed XRP sales, there’s nothing to disgorge.

Also Read: Bitcoin ‘FOMO’ To Push Prices To A ‘Different Level’: Mark Yusko

This latest development adds another layer of complexity to the ongoing lawsuit between Ripple and the SEC.

The vast difference between the proposed fines highlights the significant disagreement between both parties.

The regulatory landscape surrounding cryptocurrencies remains unsettled, with cases like the SEC vs. Ripple raising crucial questions about the classification and sale of digital assets.

What’s Next: If you’re interested in staying informed about the future of digital assets and the evolving regulatory environment, consider attending the Benzinga Future of Digital Assets event on Nov. 19.

This industry gathering will feature leading experts discussing regulations, investment strategies, and the latest innovations shaping the world of cryptocurrencies.

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