Don Wilson, founder of high-speed trading giant DRW, said Thursday that he encourages the Commodity Futures Trading Commission to approve perpetual futures contracts on a wide range of products, including those linked to single stocks.

Speaking at the CFTC Innovation Advisory Committee's inaugural meeting, Wilson said he views perpetual futures contracts as "a very useful risk management tool."

Perpetual futures contracts, also known as perps, are a type of derivative that never expires and trades 24/7. They allow traders to use leverage to amplify their gains or losses.

Exchange operator CME Group sued the CFTC in June after the derivatives regulator approved the listing of cryptocurrency-linked perpetual futures contracts at Kalshi. In its suit, CME argued that the CFTC violated U.S. law by classifying Kalshi's perps as futures and not swaps.

"If we categorize them as swaps, they are just going to remain offshore," said Wilson. "We will not be able to benefit from the risk management tools that these can serve if we bring them onshore into a safe and regulated environment."