Its expected, that they will adjust somehow as EU is too big of a market to lose.
In the end they will just rebrand and have totally new name but same people are going to be behind the scenes.
Question is if EU and other regulators would tolerate this, or they will add some restrictions for doing this.
My advice is to stay away from ALL stable coins, and don't hold them long term.
Tether has been under serious scrutiny and regulation issues from the US and other European countries. I think they wouldn’t want to further add to their problems, they will jus find a good way out. They’ve been here a while now dominating the stable coin space, they’ll jus get better and stronger.