In my personal opinion, as a person living in West Europe the EU never liked crypto... They're always trying to make the rules more strict, force more KYC/AML, restrict us whenever they can. Will they back down? My gut feeling says they won't. They don't like what they cannot controll.
But then again, i don't have a crystal ball to predict the future, i could be completely wrong.
Don't they understand that it's not a smart choice? If the EU bans Bitcoin or doesn't become Bitcoin-friendly, then other countries will attract investors and workforce from the EU. Myhe country is a good example of that. Binance, Tether and other companies put lots of money in crypto projects because my country is very crypto-friendly and tax rates for similar businesses are very low, they have the option to hire local people in a way that they'll pay 1% tax on their salary, it gives business the possibility to offer competitive net salary.
Bitcoin is the innovation of the 21st century. If rich countries let it go, then some poor countries like mine will use that opportunity. I don't understand why they make such mistakes over and over again.