CoinDesk
Don Wilson, founder and CEO of market maker DRW, is pushing back on how U.S. regulators and the broader market understand perpetual futures. In a series of posts on X, Wilson argued that perpetual contracts are simply futures without an expiration date, and that features often associated with crypto perps, including high leverage, auto-deleveraging and 24/7 trading, reflect implementation choices by some crypto exchanges rather than defining traits of the product.
"Most of what people think they know about 'perps' has nothing to do with the contract itself," Wilson wrote, adding that he is "not a fan of ADL" and sees "no reason it needs to be used for perps." His comments land as U.S. interest in regulated perpetuals accelerates: Kalshi, which saw perps trading explode shortly after launch, has filed a proposal to expand the product to precious metals, while other venues explore securities and commodities.
Why it matters
Wilson's framing is a direct challenge to the legal-label debate that has stalled regulated perpetuals in the U.S. The CFTC and other regulators have historically treated perpetuals as swaps, which subjects them to a separate oversight track and complicates listing. Wilson's argument is that economic substance should govern: a contract that pays the same funding-driven returns as a futures position is, functionally, a futures contract, regardless of its name. That distinction will shape whether regulated U.S. venues can list perps, on what collateral terms, and under which clearing framework.
The argument also lands against the backdrop of a fast-evolving crypto perp market. Decentralized exchanges such as Hyperliquid run continuously, accept digital collateral and recalculate margin in real time, an architecture that allows tighter collateral buffers and alternative liquidation mechanics like ADL. Wilson concedes those features exist but says they belong to the venue stack, not the contract.
Market impact
The clearest near-term read is for U.S. market structure.
Frequently asked questions
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Who is Don Wilson and why does his perps opinion matter?
Don Wilson is the founder and CEO of DRW, one of the largest and longest-running proprietary trading firms and market makers out of Chicago. His public framing of perps carries weight because DRW trades across traditional and crypto markets and has direct exposure to U.S. market-structure debates.
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What is Wilson's core argument about perpetual futures?
Wilson argues that perps are simply futures contracts without an expiration date, and that features like high leverage, auto-deleveraging and 24/7 trading are implementation choices by certain crypto exchanges rather than defining characteristics of the contract itself.
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What is auto-deleveraging and why does Wilson oppose it?
Auto-deleveraging is a liquidation mechanism used by some crypto perp venues that automatically closes winning positions when losing traders cannot cover their losses. Wilson said he is not a fan of ADL and sees no reason it needs to be used for perps.
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How does Kalshi fit into the regulated perps story?
Kalshi, a CFTC-regulated prediction market, saw perpetual futures trading explode shortly after launch and has submitted a proposal with regulators to expand its offerings to precious metals, marking one of the first regulated U.S. venues pushing beyond crypto perps.
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What would change if regulators accepted Wilson's substance-over-label view?
If the CFTC and other regulators treat perpetuals as futures based on economic substance rather than as swaps because they lack an expiry, regulated U.S. venues would gain a clearer path to list perps across commodities, equities and crypto, likely under existing futures frameworks.
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