Why does America consider digital currencies a serious threat to itself?

Anti-crypto US Senator Elizabeth Warren has launched another controversy against the industry, claiming that digital currencies are a serious threat to America. These comments were made in response to JPMorgan CEO Jamie Dimon's comments calling for a ban on digital currencies.
In his new remarks, Warren strongly criticized digital currencies for their role in the evils facing the United States, such as terrorism, money laundering, and the financing of sanctioned countries. While agreeing with the recent statements of the CEO of JP Morgan, he said that there is a new threat out there, and that is crypto, which is used to finance terrorism and drug trafficking. We cannot allow this to continue.

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Meanwhile, according to data from research company Chainalysis, on-chain analysis has proven that only less than 0.2% of cryptocurrencies are used for illegal activities.
However, the facts have not stopped US officials from opposing digital currencies. Damon recently said in his statement, the only real use of it (crypto) is for criminals, drug traffickers, money laundering and tax evasion… If I were the government, I would ban it. Meanwhile, JP Morgan is the second largest bank in terms of paying fines, having paid almost $40 billion in fines for 272 violations over the past two decades. Most of these violations happened during the time of Damon's CEO.
Although some politicians like Senator Warren want to ban cryptocurrencies, this is similar to banning the internet, which is simply not achievable.