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.
As someone who lives in the east of the EU, I haven't had that impression until now, because there is still a politics here that is essentially very corrupt and
"infected" with old communist ideas packaged in fake democracies - and until now their policy has been to steal as much as possible for themselves, so they haven't paid too much attention to what ordinary people are doing.
However, the "West" is very aggressively pressuring the "East" to implement the measures that were voted in the EU Parliament, so that by the end of this year, some laws that have not been in full force until now will be expressed in the majority of EU member states.
As far as I'm concerned, the EU or anyone else can ban whatever they want even today, because BTC didn't ask for their permission, nor are they even important in the whole story. The fact that many years ago they decided to withdraw the EUR 500 banknote because someone concluded that it was being used by terrorists - which later turned out to be complete nonsense - shows how intelligent the EU bureaucrats are.