The Securities and Exchange Commission has responded to Ripple's motion, giving Ripple three business days to reply. Ripple recently opposed the SEC's motion, urging the court to reject the SEC's request for penalties.

Ripple argues that any penalty should not exceed $10 million, contrasting with the SEC's demand for $2 billion in fines and penalties. Ripple also seeks to strike out SEC materials, including supporting exhibits and a declaration from Fox, an accountant in the SEC's enforcement wing, arguing that it was premature and could lead to unnecessary expenses and delays.

The magistrate judge, Sarah Netburn, known for fair rulings, issued a new scheduling order, seen as positive by the crypto community, addressing Ripple's request to dismiss the SEC's recent submissions. Ripple contends that the SEC's claims lack sufficient evidence, particularly regarding financial harm, and disputes the characterization of XRP as a security, emphasizing its use for transactions rather than investments.

Ripple aims to undermine the SEC's arguments, especially regarding disgorgement and penalties.