Wall Street veteran Don Wilson says regulators are getting perps all wrong

Perps Week 2026Wall Street veteran Don Wilson says regulators are getting perps all wrongDRW 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 EDTPresented byPerpetual futures have become one of crypto's defining financial products, but DRW CEO Don Wilson says much of what people think they know about them is wrong.In a series of posts on X, Wilson argued that perpetual futures — or "perps" — are simply futures contracts without an expiration date. The features often associated with crypto perpetuals, such as high leverage, auto-deleveraging (ADL) and around-the-clock trading, are characteristics of how some crypto exchanges chose to implement the products, not the contracts themselves."Most of what people think they know about 'perps' ... has nothing to do with the contract itself," Wilson wrote.His comments come as interest in bringing perpetual futures into regulated U.S. markets continues to grow. Several exchanges and market participants have explored launching perpetual futures beyond crypto, though questions remain over how the products should be regulated and whether they fit within existing futures or swaps frameworks. Kalshi, which saw perps trading explode shortly after launching, recently submitted a proposal with regulators to expand its offerings to precious metals.Unlike traditional futures markets, crypto exchanges like Hyperliquid operate continuously, use digital collateral and can calculate margin requirements in real time. Those technological differences allowed exchanges to offer products with higher leverage and alternative liquidation mechanisms, including ADL, which automatically reduces winning positions when losing traders cannot 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, ad…

Wall Street veteran Don Wilson says regulators are getting perps all wrong

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