EU wants to be a leader in regulation. Let's unpack this. Regulation is by definition limiting what you can do - in modern liberal democracy, everything that is not forbidden is allowed. That means every piece of legislation is limiting what you do - you could do everything before legislation.
So EU is proud to lead in red tape. Let's now talk about how wealth and prosperity is made - by voluntary exchange. Regulation limits what kind of voluntary exchange happens, thus making us poor.
Thankfully, this is an opportunity for other countries. EU "enabled" "markets in crypto assets" with their regulation. What is the result? If you want to do a project in this area, go to Switzerland, Dubai or Latin America.
Want to do innovation in AI? Perfect, in United Arab Emirates, you're welcome.
Limiting speech in USA by presidential overreach is now a hot topic in court. And EU does this openly, proudly, writing well publicized letters to social media. Like an angry barking dog protecting a territory. The problem is, the dog only barks, shits and pees there, it does not improve it. And everyone sane just walks around, because the barking does not make sense.
I would say if you want to produce something, especially something big, avoid the "innovations" of the barking dog and go elsewhere. Especially if you need to focus on the problem you are solving and not paper pushing and navigating around red tape. It makes an order of magnitude difference.
I've written about deregulation also in this short paper: