The United States Securities and Exchange Commission (SEC) has denied Ripple's appeal for reduced penalties, stating that the proposed settlement is insufficient. The SEC is seeking a settlement of $102.6 million from Ripple, a significant reduction from the initial $2 billion fine. However, Ripple's Chief Legal Officer maintains that there are no victims in the case requiring compensation.

The SEC's rejection of Ripple's request is based on the company's refusal to agree to any relief measures, unlike Terraform Labs, which was fined a lower percentage due to its bankruptcy status and commitment to refund investors. The SEC argues that a lower civil penalty would not be sufficient to resolve the issue, and Ripple's comparison to Terraform Labs is flawed.

Ripple's legal team has argued that the SEC's requested penalty is unreasonable and exceeds the range based on Terraform's settlement. They propose a penalty cap of no more than $10 million, citing precedents from the SEC's cases against Block.one, Telegram, and Genesis Global Capital. However, the SEC maintains that Ripple's circumstances differ significantly from those of Terraform Labs.

The legal battle between the SEC and Ripple has been ongoing since 2020, with the SEC accusing Ripple of selling unregistered securities through its XRP token. While a judge ruled in July 2023 that XRP was not a security in programmatic sales, the lawsuit against Ripple persists. The trial date has yet to be determined, and the outcome will have significant implications for the cryptocurrency industry.

The SEC's firm stance on enforcing substantial penalties reflects its commitment to maintaining the integrity of financial regulations. As the legal battle continues, the outcome will have far-reaching consequences for the cryptocurrency market and its regulatory landscape.