I wouldn't call it FUD though, maybe she is just voicing her own opinion, maybe she is one powerful Senator in the US and has hatred on crypto or even Russia. But her bill will have to passed first, and she knows it is going to be difficult for her.
And it's not just crypto that she is targeting, even oil companies that is making or taking advantage of the war situation by increasing their prices are under her radar. But then again, as I have said, bitcoin and the rest of crypto is too big to fall right now and not even a US Senator can stop it.
Either Elizabeth Warren hates crypto or she's simply pretending hate it in order to protect the image of the US Dollar. She's a government official, so it's normal to see opposition against crypto from someone in that position. It really doesn't matter what she or anyone else say against crypto as long as decentralization wins in the long run. It's been nearly 13 years since Bitcoin's inception, and it's still going strong despite criticism from haters all around the world. Some say crypto is a means to avoid sanctions, others say it's a tool for money laundering and terrorist financing, while others say crypto is a scam or a sham.
Words are simply words and they don't have any direct effect over crypto's prominence in the mainstream world. Crypto will be able to stand the test of time if it preserves decentralization/censorship-resistance. Who knows if it beats Fiat someday? Just my opinion
The most ironic thing of all is that while some think that bitcoin needs to beat fiat to ensure its existence, the truth is that this is not necessary because fiat is going to beat itself, the only thing that bitcoin needs to do as you stated is just to remain decentralized as it is right now and that is more than enough to outlast the current fiat system.
After all once the fiat system goes down there are only two alternatives the world governments can take, the first one is to move to a more stable currency backed by gold or even bitcoin or move to a world in which we use several currencies as reserve currencies, and with Russia asking for Rubles for gas payments it seems we are moving towards the latter rather than the former, but such a system will be even more unstable than the one we have right now so eventually they will have to make a move towards gold, but that will be the same as admitting that hard money is superior to fiat which will bring a great deal of people to this market during that period of crisis.