Ripple is disputing the $2 billion penalty proposed by the US Securities and Exchange Commission (SEC) and is instead seeking a fine of no more than $10 million. This development comes as the legal battle between Ripple and the SEC enters its trial phase, with the lawsuit centering on allegations that Ripple and its executives engaged in an unregistered securities offering by selling XRP tokens.

The SEC's allegations date back to 2020, and earlier this year, the regulator sought a $2 billion penalty from Ripple. However, Ripple's chief legal officer, Stuart Alderoty, has argued that a fine exceeding $10 million is unjustified. The company's lawyers have reinforced this stance, drawing parallels with the case between the SEC and Terraform Labs, a now-defunct crypto firm that agreed to pay a $4.47 billion fine for fraudulent activities.

Ripple's legal team asserts that the SEC has established a precedent for civil penalties ranging from 0.6% to 1.8% of the defendant's gross revenue, citing the Terraform Labs case as an example. Based on this rationale, they believe a suitable fine for Ripple would be no higher than $10 million. Despite the ongoing trial, Ripple's CEO, Brad Garlinghouse, anticipates a resolution by summer 2024, although the intricate legal process may lead to delays. American lawyer Jeremy Hogan shares a similar outlook, predicting a possible $100 million settlement in the next few months.

Throughout 2023, Ripple achieved three partial court victories, which positively impacted XRP's price. A decisive win for Ripple could potentially trigger a substantial price rally for the token. The ongoing legal battle between Ripple and the SEC has significant implications for the cryptocurrency market, with many stakeholders closely following the case's progression.

The outcome of this lawsuit may have far-reaching consequences for the regulatory landscape of cryptocurrencies in the United States. As the legal battle unfolds, the cryptocurrency community remains divided on the potential impact of the final judgment. The anticipation surrounding the disclosure of Ripple's financial records and the subsequent steps in the legal process reflects the high stakes involved. With the SEC aiming to establish a precedent and Ripple defending its operational practices, the lawsuit serves as a litmus test for the future of cryptocurrency regulation.