DRW CEO Don Wilson says perpetual futures aren’t inherently risky crypto gambling tools, and it’s time traditional markets and regulators start embracing them.

By Helene Braun|Edited by Cheyenne Ligon

Jul 28, 2026, 1:23 pm EDT

Perpetual futures are now a major part of the crypto world, but according to Don Wilson, CEO of DRW, many common beliefs about them aren’t accurate.

Wilson recently explained on X that perpetual futures – often called “perps” – are essentially futures contracts that never expire. He points out that features like high leverage and automatic deleveraging, commonly seen with crypto perps, aren’t inherent to the contracts themselves but rather choices made by specific cryptocurrency exchanges when setting them up. These exchanges offer 24/7 trading as well.

According to Wilson, a lot of what people assume about those involved in a crime doesn’t actually relate to the details of the agreement or situation itself.

Interest in offering perpetual futures contracts on traditional U.S. markets is increasing. While several exchanges are looking into expanding these contracts beyond cryptocurrencies, regulators are still figuring out how to oversee them and whether they should be classified as futures or swaps. Kalshi, an exchange that experienced a surge in trading volume after launching perps, recently proposed to regulators that it be allowed to offer contracts on precious metals.

Unlike traditional futures trading, cryptocurrency exchanges such as Hyperliquid are open 24/7, use digital assets for collateral, and instantly calculate how much money you need to have in your account. These technological advancements allow them to offer higher leverage and new ways of handling losing trades, like ADL – a system that automatically reduces the size of profitable trades when others can’t cover their losses.

Wilson said those design choices should not be confused with perpetual futures themselves.

“I’m not a fan of ADL,” he wrote, adding that there is “no reason it needs to be used for perps.”

Wilson pointed out that new digital payment systems can actually *enhance* how we manage risk. Traditionally, clearinghouses only assess margin requirements once daily, and participants have until the next business day to provide any extra funds needed as collateral. This delay is problematic because market conditions can change drastically overnight, forcing clearinghouses to demand larger initial margin deposits as a safety net.

Real-time settlement allows exchanges to constantly update margin requirements and ask traders to quickly provide collateral. This reduces the large amount of money traders usually need to put up front, while still keeping risks under control, according to Wilson. Whether exchanges then offer higher leverage is a business choice, and doesn’t fundamentally define perpetual futures contracts.

According to Wilson, the key benefit of perpetual futures is that they save investors the hassle and expense of constantly renewing contracts as they expire. This simplifies trading, lowers costs, and helps positions more accurately reflect current market prices.

He also urged regulators to focus on economic substance rather than legal labels.

Wilson argues that just because perpetual contracts don’t have an expiration date doesn’t mean they should be considered the same as swaps. From an economic perspective, he believes they function more like traditional futures contracts.

As a crypto investor, I really agree with Wilson’s point – perpetual futures shouldn’t be limited to just crypto. They’re a useful way to figure out fair prices and manage risk, and we should see them offered on things like commodities and stocks too. It’s not just a crypto thing; it’s a valuable tool for all markets.