The legal dispute between Ripple and the US Securities and Exchange Commission (SEC) has intensified, with the regulator responding to Ripple's appeal against a proposed $2 billion fine. The SEC's response draws parallels with a recent settlement involving Terraform Labs, highlighting the complexity of the case.

Ripple had earlier contested the fine, citing the Terraform Labs (TFL) Consent Judgment, where the defendant agreed to a settlement involving $3.58 billion in disgorgement and a $420 million civil penalty. Ripple argued that this penalty was significantly lower than what the SEC is demanding, considering the lack of fraud in Ripple's case.

However, the SEC countered that the TFL settlement was unique due to factors like bankruptcy, destruction of crypto wallet keys, and reimbursement of investor losses. The regulator emphasized that Ripple failed to acknowledge these factors and that the TFL case is irrelevant to determining Ripple's penalties.

The SEC also criticized Ripple's comparison of the civil penalty to TFL's gross sales, instead suggesting a ratio of 11.7% based on gross profit. Applying this ratio to Ripple's gross profits would result in a potential penalty of $102.6 million, exceeding the $10 million limit Ripple is seeking.

As the legal battle continues, the XRP community speculates about a potential settlement. The outcome of this case will have significant implications for the cryptocurrency industry, and the ongoing dispute highlights the need for clarity in regulatory frameworks.