(Bloomberg) -- Ripple Labs Inc. Chief Executive Officer Brad Garlinghouse said on X that the US Securities and Exchange Commission will seek $2 billion in fines and penalties in its legal fight over the XRP crypto token.

Most Read from Bloomberg

• Trump Vows to Pay Fraud Trial Bond Cut by 68% to $175 Million

• After Exposing Realtors, Eliminate the Mortgage Interest Deduction

• Trump Facing Moment of Truth for Finances in Manhattan Court

• Putin Says Islamists Attacked Moscow, Still Seeks Ukraine Link

The regulator is slated to release a public brief on Tuesday, Stuart Alderoty, Ripple’s chief legal officer, said in a separate post on X on Monday. The company will file a reply next month, he said.

The SEC sued Ripple in 2020, claiming the firm broke its rules when it raised money by selling the digital token without registering it as a security.

The case is being closely watched by crypto enthusiasts because of its implications for the scope of the SEC’s turf. In what’s been seen by many as a loss for the agency’s jurisdiction, a federal judge in July ruled that sales of XRP to retail investors on exchanges didn’t amount to investment contracts.

XRP rose about 4% to 66 cents on Monday. The token has increased around 6% this year.

Most Read from Bloomberg Businessweek

• Weight-Loss-Drug Users Pay Up for Help Ditching the Pricey Meds

• Magnificent Seven? It’s More Like the Blazing Two and Tepid Five

• Wall Street and Silicon Valley Elites Are Warming Up to Trump

• Business Schools Still Lag on Diversity, Despite Stated Goals

• Elon Musk’s Don Lemon Implosion

©2024 Bloomberg L.P.