The legal tussle between Ripple Labs and the United States Securities and Exchange Commission (SEC) has intensified, with the SEC filing a robust response to Ripple's accusations regarding settlement demands.

Ripple previously criticized the SEC for imposing what it deemed excessive settlement charges, drawing comparisons to the Terraform Labs case. Ripple argued that despite the significant losses incurred by users in the Terraform ecosystem token collapse, the fine imposed on Terraform was less severe than the $2 billion the SEC is demanding from Ripple for alleged securities law violations in its XRP sales to institutional investors. Ripple contends that it should not be fined more than $10 million.

In its latest filing, the SEC refuted Ripple's claims, emphasizing that settlement charges are determined on a case-by-case basis, considering various factors. The SEC pointed out that while the average settlement rate from sales proceeds is 1.27%, Terraform Labs' lower fine was due to its bankruptcy status and lack of liquidity to pay a higher penalty. Moreover, the SEC noted that Terraform Labs agreed to cease the actions that led to the violations, whereas Ripple Labs has continued the activities that prompted the lawsuit.

The SEC's argument underscores the tailored nature of its enforcement actions, highlighting the unique circumstances of each case. The regulator's response aimed to justify the $2 billion settlement it seeks from Ripple by drawing distinctions between the ongoing activities of Ripple and the halted operations of Terraform Labs.

Despite the ongoing legal uncertainty, Ripple Labs continues to grow its business, recently announcing a stablecoin update and a partnership with Archax. These developments demonstrate Ripple's resilience and strategic efforts to strengthen its market position amid the legal challenges.

The court's decision on the appropriate remedy for Ripple's alleged violations remains pending. The outcome of this case could significantly impact other SEC-related cases, setting a precedent for future settlement negotiations and enforcement actions in the cryptocurrency industry.