The U.S. Securities and Exchange Commission (SEC) is demanding a $770 million penalty from Ripple for violating securities laws, according to crypto lawyer John Deaton. The SEC, feeling embarrassed after losing legal battles against Ripple, seeks the hefty penalty despite dropping charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. Deaton explained that the penalty phase involves extensive legal processes, and a final judgment is not expected until late summer or later. The outcome of the SEC's lawsuit against Coinbase could also impact Ripple's penalty; if Coinbase wins, the SEC might settle with Ripple, but if Coinbase loses, a settlement seems unlikely.