If Bitcoin became anonymous like Monero, it would face huge backlash from mainstream governments and even "Wall Street". Spot ETFs would be taken down, crashing along market prices with them. The backlash would be nothing more than pure hate against privacy. Without a way to know the number of coins you have, it would be impossible to enforce taxation. Governments will come up with an excuse that Bitcoin's newly-adopted privacy features will encourage money laundering, tax evasion, and terrorist financing. But we all know the real intentions behind this.

For Bitcoin to obtain the approval of the regulators, it must remain as is. You can still obtain privacy on Bitcoin via separate, optional solutions (mixers, CoinJoin, switching to XMR, etc). I'm surprised that Monero is still listed on centralized exchanges, when many have closed their doors (de-listed) to it. If governments keep pushing, all CEXs would eventually cease trading XMR. Only DEXs will remain. The same fate awaits BTC if it becomes truly-private. Maybe that's a good sign, because Bitcoin will become more decentralized? No matter how you see it, government cooperation is necessary for the healthy growth of the industry. Otherwise, setbacks (obstacles) will prevent market prices from going to the moon. It's impossible to predict what will happen in the future, so I'd hope for the best.