The sky is not falling, but consider this:
"Schumer's top nine campaign contributors are all financial institutions who have contributed over $2.5 million to the senator."
"The Securities and Investment industry is the largest donor to Schumer’s senatorial campaigns."
Source: Wikipedia. Is Schumer really concerned about some drugs being sold? Uhhh, no. Is Schumer concerned about the rise of a new system of exchanging value that cuts out his largest donors? More likely. In the letter, the Senators do go out of their way to demonize bitcoin when they didn't have to. This is not a surprise because Senator Schumer is from New York, the center of the financial business in the US.
Legislation is very slow, however. By the time anything happens on the hill, Bitcoin will hopefully be well past stoppable. And, there are interests that would try to block any such legislation. The increased attention received by bicoin may actually help the project.
They've done such a bang-up job killing file sharing after all...
Schumer doesn't give a flying fuck about anything but Chuck Schumer. It's just a bandwagon for him to jump on that one of his interns read about, probably while looking for boner pills online.