Ripple's Chief Legal Officer, Stuart Alderoty, has announced that the company has filed a rebuttal to the Securities and Exchange Commission's (SEC) demand for a $2 billion penalty. This development is the latest in the ongoing legal battle between Ripple and the SEC, which began in December 2020.

The SEC alleged that Ripple raised $1.3 billion through the sale of XRP, an unregistered security. However, in July 2023, Judge Analisa Torres ruled that XRP was not a security when sold on public digital asset exchanges. Despite this ruling, the SEC is seeking penalties totaling $2 billion, which includes $876 million in disgorgement, $198 million in prejudgment interest, and a civil penalty of $876 million

Ripple has argued that the penalty should be significantly lower, around $10 million. In their opposition motion, Ripple stated that the SEC's request is "just more evidence of its ongoing intimidation against all of crypto in the U.S." Ripple also emphasized that they won on significant issues and are confident that Judge Torres will approach the final remedies phase fairly.

The company has modified its contracts to avoid the problems identified by the court and has publicly acknowledged the ruling. Ripple's CEO, Brad Garlinghouse, has also spoken out against the SEC's actions, stating that there is "absolutely no precedent" for the $2 billion fine and that the company will continue to expose the SEC's actions.

The dispute between Ripple and the SEC has been closely watched, as it has significant implications for the cryptocurrency industry. The SEC's actions have been seen as an attempt to regulate the industry more heavily, while Ripple and other companies argue that existing securities laws do not apply to digital assets.

In April, Ripple filed a rebuttal to the SEC's request for penalties, arguing that the agency's demands are excessive and without precedent. The company's Chief Legal Officer, Stuart Alderoty, stated that the SEC's actions are evidence of "ongoing intimidation against all of crypto in the U.S." Ripple is confident that the judge will approach the final remedies phase fairly and rule in their favor.