A Mother’s Day Masterclass: Moms Making Crypto Crystal Clear – The Clear Crypto Podcast | Episode 7

In the next few lines, we’ll summarize the special Mother’s Day episode of the Clear Crypto Podcast. Often, when someone wants a complex topic explained simply, they use the lazy phrase, “Explain it like you would to your mom.” This episode flips that tired cliché on its head. Instead, we hear from some of the sharpest minds in crypto—who also happen to be moms—as they explain the industry’s most intricate concepts to the rest of us.

Hosted by Nathan Jeffay and Coin Telegraph’s Managing Editor, Gareth Jenkinson, this episode brings “no jargon, no hype, just straight talk.” We’ll dive into four crucial topics with four incredible experts: Adi Shildan Meidan StarkWare’s Product Manager, demystifies the world of crypto bridges; Jennie Levin breaks down crypto crime from her perspective as a former federal prosecutor; Katherine Kirkpatrick Bos gives us the inside scoop on the SEC; and Blue Macellari clarifies the essential role of stablecoins. Get ready to have these concepts explained with the clarity and precision that only a mom can provide.

Demystifying the Crypto Bridge with Adi

Every blockchain, whether it’s Bitcoin, Ethereum, or Starknet, operates like its own self-contained island. It has its own rules, its own native currency, and its own community. But what happens when you want to move assets or information from one island to another? Imagine if your phone could only call people who used the same mobile carrier—it would be incredibly limiting. This is the problem that a crypto bridge solves.

To help us understand this vital piece of infrastructure, the podcast welcomed Adi, a former professional dancer and choreographer who pivoted into the world of blockchain technology. As a mother to two young girls, Adi is an expert at breaking down complex movements into simple steps, a skill she now applies to explaining protocol architecture.

What is a Crypto Bridge?

“A bridge is a way to move funds from one place to another,” Adi explains in the simplest terms. Just like a physical bridge connects two separate landmasses, a crypto bridge connects two separate blockchains, allowing users to transfer assets between them. Starknet, a leading Layer 2 scaling solution for Ethereum, relies on its own robust bridge, StarkGate, to allow users to move assets securely between the Ethereum mainnet (Layer 1) and the faster, cheaper Starknet environment (Layer 2).

While there are several types of bridges, Adi focused on one of the most common and important models: the “lock-and-mint” or “burn-and-mint” mechanism.

How the “Burn and Mint” Model Works

Let’s walk through the process step-by-step:

1. Locking the Asset: Imagine you have an asset, let’s say 1 ETH, on the Ethereum blockchain (the “origin” chain) and you want to use it on another blockchain. To start the process, you send your 1 ETH to a specific smart contract on Ethereum that acts as the bridge’s vault. This contract “locks” your ETH. Adi uses a fantastic analogy: “It’s like when you’re in Monopoly and you are in jail… you can’t do anything with your funds.” Locking ensures that the original asset cannot be spent or moved while its equivalent exists on the other chain, preventing double-spending.
2. Minting the Representation: Once the bridge confirms your ETH is locked on the origin chain, it triggers a corresponding action on the destination chain. A new token, which is a wrapped or synthetic version of your original ETH (e.g., wETH), is created—or “minted”—in your wallet on the new chain. You now have a token that represents your locked ETH and is worth the exact same amount, which you can use freely within the new blockchain’s ecosystem.
3. Burning to Return: Now, let’s say you’re finished on the second blockchain and want your original ETH back. You initiate the return process by sending the wrapped token to the bridge contract on the destination chain. This contract then “burns” the token, which means it is permanently destroyed and removed from circulation.
4. Unlocking the Original: The burning of the wrapped token serves as a message back to the smart contract on the original chain. Once it receives this proof of burning, it automatically “unlocks” your original 1 ETH and returns it to your wallet. Adi refers to this as an “atomic action”—the burning on one side and the unlocking on the other are linked and must happen together.

Why Are Bridges a Common Target for Hacks?

Despite their incredible utility, news headlines often feature stories of bridges being exploited for massive sums. Adi explains why these protocols are such tempting targets for hackers:

• High-Value Targets: Bridges are like digital Fort Knoxes. They hold vast amounts of locked assets, making them a “honeypot” for malicious actors. A single successful exploit can yield a massive payday.
• Infrastructural Complexity: A crypto bridge isn’t a single piece of code; it’s a complex system of interacting smart contracts and sometimes off-chain components. The more complex a system is, the larger its “attack surface” becomes, meaning there are more potential vulnerabilities for hackers to find and exploit.
• Trust Assumptions: Not all bridges are created equal. Some are highly centralized, meaning users must trust a small group of operators or a single entity to manage the bridge honestly and securely. If that central entity is compromised, the entire bridge and its funds are at risk. On the other end of the spectrum are trustless and permissionless bridges, which rely on code and cryptography rather than human intermediaries.

Adi emphasizes that the culture at StarkWare is focused on building StarkGate to be as trustless and permissionless as possible. “We want to put the trust in the smart contracts, in the code itself,” she says. By making the code open-source and reviewable, the power remains with the users, who always maintain control over their funds.

Navigating Crypto Crime with Jennie Levin

The world of crypto is a place of incredible innovation and idealism, but like any financial frontier, it also attracts its share of bad actors. To navigate this landscape, the podcast brought in Jennie Levin, a true heavyweight in the legal and regulatory space. A former federal prosecutor who spent years putting criminals behind bars for fraud and money laundering, Jenny now helps Web3 teams stay on the right side of the law. She recently moved from her role as Chief Regulatory and Strategy Officer at Figment, a staking-as-a-service provider, to become the Chief Legal and Operating Officer at the Algorand Foundation.

As a single mom who went through a remarkable journey involving surrogacy to have her two children, Jenny knows a thing or two about fighting for what matters. She brings that same tenacity and clarity to the complex world of crypto crime.

What Does a Classic Crypto Scandal Look Like?

Jenny’s first point is a crucial one: “Crypto scandals are not just unique to crypto.” The types of fraud we see—like Ponzi schemes, market manipulation, or outright theft of funds—are the same schemes that have existed in traditional finance for centuries. The technology is new, but the underlying human greed and deception are not. A crypto fraud case often involves the same elements as a traditional one: misrepresentation, false promises of high returns, and the misappropriation of investor funds.

The key difference, Nathan points out, is that the crypto space is less regulated, potentially giving bad actors more room to operate and victims less recourse. Jenny agrees but adds important nuance.

Regulation, Enforcement, and Recourse

“When you have a public company… there are more hoops that you have to jump through, more regulatory hurdles,” Jenny explains. This constant oversight makes it much harder to hide a fraudulent scheme. In crypto, where many projects don’t have the same reporting requirements, a scam can sometimes go undetected for longer.

However, she stresses that from a criminal enforcement perspective, the tools are the same. “If I’m at the US Attorney’s office and I wanna bring a case against somebody who’s committed a crypto fraud, I will use my money laundering, wire fraud, [and] mail fraud statutes, just like I would in any financial crime case.” Investigators use the same subpoena and search warrant powers, and victims have the same rights to restitution under the law.

The regulatory landscape is maturing, with more checks and balances coming into place. While it’s not yet as defined as traditional finance, Jenny believes this evolution is a good thing for the industry’s long-term health.

A Balanced View: Don’t Let Fear Deter You

So, how should a newcomer approach this space? Jenny advises against both blind trust and paralyzing fear. Her perspective is balanced and empowering:

• Crypto is the Future: “Blockchain technology is the future, and so people should participate,” she states confidently. The technology offers a more secure and efficient way to transact.
• Do Your Research: The antidote to fear is knowledge. Before investing in or using a new protocol, take the time to understand it. Work with credible companies that have transparent processes and a history of prioritizing security.
• Seek Guidance: You don’t have to navigate this world alone. “Talk to your neighbor who’s involved in crypto. Call your lawyer and ask them some questions. Call your accountant,” she advises. Learn from people who are already in the space.
• Fraud is Everywhere: Finally, she offers a dose of reality. “There is fraud everywhere, and that is not, unfortunately, going to change. I don’t think that there’s more fraud in crypto than there is in other areas.”

Jenny’s message is clear: participate, but do so with your eyes open. Education and due diligence are your best defenses.

Understanding the SEC’s Role with Katherine Kirkpatrick Bos

If you’re building a project in the crypto space, there are three letters that can inspire both respect and anxiety: S-E-C. The U.S. Securities and Exchange Commission is a powerful regulator, and its actions have had a profound impact on the industry. To demystify this institution, the podcast turned to Katherine Kirkpatrick Bos, the General Counsel of StarkWare and a mother of two. Having helped shape the backbone of institutional crypto, Katherine has an expert understanding of how regulators think.

What Does the SEC Actually Do?

“When people in crypto think of the SEC, they actually think of SEC enforcement,” Katherine notes. But that’s only one part of the picture. The SEC has multiple divisions that consult with market participants, help them interpret the law, and perform routine regulatory examinations.

The division that makes headlines is the Division of Enforcement. Their job is to investigate potential violations of securities laws. If they find evidence of wrongdoing, they can bring an enforcement action, which might lead to litigation or a settlement. This is the part of the SEC that the crypto world has become most familiar with.

The Power of the Chair: Setting the Tone from the Top

Gareth posed a timely question about the influence of the SEC’s leadership, particularly with the recent change in command. Katherine confirmed that the Chair has “a lot of influence” because, like any organization, the SEC’s direction is guided by its “tone from the top.”

The previous administration under Chair Gary Gensler made crypto enforcement a major priority. This led to a period of intense scrutiny and what many in the industry called “regulation by enforcement.” One of the major criticisms of this approach was that the SEC dedicated a disproportionate amount of time and resources to crypto, which represents a small fraction of the overall financial markets.

The crypto community is hopeful that the new Chair, Paul Atkins, will take a different approach. “We’re all hoping Chair Atkins appropriately sets a tone from the top that SEC enforcement should be focused not on registration issues, but on actual frauds and real wrongdoing in the securities markets,” Catherine says. A shift in priorities could mean a more collaborative and less adversarial relationship between the industry and its primary regulator in the United States.

The Real-World Utility of Stablecoins with Blue Macellari

Our final guest, Blue Macellari, brings two decades of experience in traditional finance to her role as Head of Digital Assets at T. Rowe Price. As a mom of three, including 10-year-old twins and a 5-year-old “wildling,” she is no stranger to managing volatility. This makes her the perfect person to explain stablecoins—digital assets designed to eliminate volatility.

What is a Stablecoin?

A friend of Nathan’s once seriously asked if a stablecoin was “something to do with horses.” Blue provides a much more accurate and simple definition: “You can take your one stablecoin and redeem it for $1. It makes it equivalent to a dollar on the internet.” In essence, it’s a crypto token whose value is pegged to a stable asset, most commonly the U.S. dollar.

How Do They Stay Stable?

Blue explains that there are two main types of stablecoins, and the difference between them is crucial:

1. Reserve-Backed Stablecoins: This is the most common and trusted model. “When you give them a dollar, the stablecoin issuer is holding onto that dollar,” Blue says. For every digital token in circulation, there is a corresponding dollar (or equivalent liquid asset like a U.S. Treasury bill) held in a verifiable reserve. This one-to-one backing ensures that users can always redeem their tokens for the real thing.
2. Algorithmic Stablecoins: Instead of relying on reserves, these stablecoins use a complex algorithm to manage their supply and maintain their peg to the dollar. Blue issues a word of caution here: “With an algorithmic stablecoin, it can, under certain circumstances, break from the one-to-one value. And what we’ve seen in crypto history is that when that happens, it can be a little bit ugly.” The collapse of algorithmic stablecoins in the past has wiped out billions of dollars in value, serving as a stark reminder of the risks involved.

Why Do We Need Stablecoins?

Blue powerfully argues that the need for stablecoins is most acute in emerging markets. Drawing on her personal experience living in Brazil, she agrees with Tether’s Paolo Ardoino that these assets are a lifeline for millions.

“It is really, really difficult not only to have a stable store of value in emerging markets, but also to do emerging markets cross-currency transactions,” she explains. If you want to trade the U.S. dollar for the British pound, the process is instant and cheap. But if you want to trade the Brazilian Real for the Colombian Peso, it’s a slow, multi-step process where fees are skimmed off at every stage.

Stablecoins solve this by providing a universal, efficient, and stable medium of exchange. They facilitate trade, cross-border payments, and give people in countries with high inflation a way to protect their savings.

To bring it home, Blue shared a personal story about trying to buy a wedding gift for friends in London while she was moving between Brazil and the U.S. Simple tasks like using PayPal or Zelle became a cross-border nightmare. “It took me two and a half days to try and attempt to get the money into John Lewis to buy the gift,” she recalls. “The bottom line was I could have sent stablecoin tokens from my wallet to their wallet, instantly, with almost no fees.”

This is the power of stablecoins: they are the friction-free money of the internet, making global commerce and personal finance simpler and more accessible for everyone.

Conclusion: Clarity from the Experts

This special Mother’s Day episode of the Clear Crypto Podcast delivered on its promise. By flipping the script and asking moms to be the explainers, we received four masterclasses in clarity, nuance, and real-world application. From Adi’s elegant breakdown of crypto bridges to Jenny’s balanced view on crime and regulation, Katherine’s expert dissection of the SEC, and Blue’s compelling case for stablecoins, the episode demonstrated that the people building and securing this industry are also raising the next generation. They are uniquely equipped to explain our complex world to the rest of us, and for their insights, we are all the wiser.