The United States Securities and Exchange Commission (SEC) has dismissed Ripple Labs’ recent plea for a reduced penalty, asserting that the proposed reduction is insufficient.

On June 13, Ripple referenced the SEC’s settlement with Terraform Labs in its appeal to Judge Analisa Torres of the United States District Court for the Southern District of New York, requesting a penalty capped at $10 million—significantly lower than the SEC’s proposed $876.3 million civil penalty.

However, on June 14, the SEC responded with a letter to Judge Torres, highlighting its $4.5 billion settlement with Terraform Labs and co-founder Do Kwon. This settlement included a $420 million civil penalty, considering the firm’s bankruptcy, its commitment to returning funds to investors, and the dismissal of the leaders responsible for the violations.

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The regulator contended that if the same ratio were applied to Ripple’s gross profits of $876.3 million, the civil penalty would amount to $102.6 million. The SEC argued that such a low penalty would not fulfill the objectives of civil penalty statutes.

The SEC’s proposed penalties for Ripple total nearly $2 billion, encompassing $198.2 million in prejudgment interest, $876.3 million in civil penalties, and an additional $876.3 million in disgorgement.

The legal confrontation between the SEC and Ripple has been ongoing since 2020, following the SEC’s allegation that Ripple sold unregistered securities. In a ruling in July 2023, Judge Torres agreed that Ripple did indeed sell unregistered securities, but only to institutional investors.

In May, the SEC opposed Ripple’s attempt to seal some financial information, insisting that the firm should disclose the revenue generated from XRP sales.