It seems that real panic has reigned in the country of the "biggest democracy", and I suppose that it is only a matter of time before the bureaucrats in the EU will follow the same path. If nothing else, at least it won't bother us until the elections for the European Parliament take place or until the MiCA comes into full force.
I'm not surprised at all by what the US is doing, I think we have a big misconception of things because they haven't acted before and have left a lot of time pass by before they did so. The thing about democracy has nothing to do with their financial stuff, the IRS has been for decades the nightmare of everyone even during the golden era of growth, you can't even get rid of your citizenship that easily and it has also been the case for years, they tax everything they have a hundred laws about capital control, they just left crypto alone and everyone thought well, this is the norm when it was actually an exception.
You (not you personally!) wanted regulation this is what comes with regulation, it's the same in every branch, from ridesharing to prostitution, you finally do lawfully things by the book and you cry at night about the times when it wasn't regulated and everything was nice and easy!
In terms of right and privacy and freedom things will get only worse, and this is just the beginning!