The latest court filing by the US Securities and Exchange Commission (SEC) appears to target Ripple's proposed stablecoin, according to reports.

In its redacted remedies reply brief filed on May 7, the SEC referred to the proposed stablecoin as an "unregistered crypto asset," presenting it as further evidence that Ripple may continue engaging in unregulated activities if not subject to a permanent injunction.

Ripple had announced plans to issue a stablecoin in April but has not provided additional details about the token since then.

The SEC argues for significant penalties, emphasizing Ripple's history of unregistered institutional sales of XRP as its primary business activity. The regulator expressed skepticism about Ripple's assurance of compliance with US securities law, dismissing the company's licensing in other jurisdictions as insufficient.

The SEC urged the court to impose substantial penalties on Ripple to deter both the company and potential imitators. The regulator seeks nearly $2 billion in fines, citing Ripple's substantial gains from violating securities laws.

However, Ripple disagrees with the SEC's demands, arguing for a civil penalty not exceeding $10 million. Stuart Alderoty, Ripple's chief legal officer, criticized the SEC's filing as unfounded and accused the regulator of failing to apply the law appropriately.

Alderoty also criticized the SEC's dismissal of crypto regulatory frameworks in other jurisdictions, suggesting a lack of respect for the efforts of non-US financial regulators.