The United States Securities and Exchange Commission (SEC) has denied Ripple Labs' request to reduce the civil penalty, insisting on a much higher fine. Ripple had sought a maximum penalty of $10 million, significantly lower than the SEC's proposed $876.3 million. The SEC's rejection highlights the ongoing tension between the regulator and the crypto company.

Ripple's argument for a lower penalty was based on a comparison with the SEC's recent settlement with Terraform Labs. However, the SEC responded that the situations were not comparable, as Terraform Labs was bankrupt and had agreed to return money to investors, whereas Ripple had not taken similar measures. The SEC emphasized that a small penalty would not serve as a deterrent and enforce responsibility.

The legal battle between the SEC and Ripple began in 2020, with the SEC claiming that Ripple sold securities without registration. The regulator is seeking steep penalties, totaling around $2 billion, to ensure compliance and prevent future misconduct in the cryptocurrency industry. The case continues, with the SEC insisting on hefty fines and Ripple seeking a reduced penalty.

This development highlights the ongoing regulatory scrutiny in the cryptocurrency industry, with the SEC taking a strong stance on compliance. The outcome of this case may set a precedent for future regulatory actions, emphasizing the importance of cooperation and compliance. As the cryptocurrency market continues to evolve, regulatory frameworks will play a crucial role in shaping its future.