Sheng-Feng HsiehGerard BrennanAlexander J. Sannella2024-10-302024-10-302024-0914670895https://www.scopus.com/record/display.uri?eid=2-s2.0-85197308593&origin=resultslisthttps://scholars.lib.ntu.edu.tw/handle/123456789/722629This study applies the methodology of the SEC (2018) to empirically determine thresholds for liquidity of crypto assets, utilizing two metrics for assessing liquidity: the Average Daily Volume (ADV) calculated by the number of units of crypto assets traded (ADV#) and by the traded dollar amounts (ADV$). Our findings reveal that the liquidity distribution patterns for both actively and thinly traded National Market System (NMS) stocks, alongside crypto-USD pairs, exhibit comparable trends. Notably, the liquidity threshold distributions remain stable despite the inclusion of crypto assets with very low unit prices; however, the volume of units traded does affect the distribution when ADV$ is used. This research contributes to the accounting field by offering a new approach to determine liquidity benchmarks for crypto assets, potentially guiding the assessment of whether a crypto asset is traded in an active or inactive market for fair value accounting purposes.enfalseCrypto assetFair value measurementInactive marketThinly tradedjournal article10.1016/j.accinf.2024.1006992-s2.0-85197308593