The 168-page official draft proposal (provisional), published Thursday, highlights the need for a "sound" legal framework, clearly defining the regulatory treatment of all crypto-assets that are not covered by existing EU financial services legislation.
I'm definitely not reading all 168 pages, but the fact that it states clearly on page 1:
At the same time, the EBA and ESMA underlined that – beyond EU legislation aimed at combating money laundering and terrorism financing – most crypto-assets fall outside the scope of EU financial services legislation and therefore are not subject to provisions on consumer and investor protection and market integrity
appears to imply that they have no plans to attempt to regulate protocols like Bitcoin, aside from the usual AML stuff. The focus will definitely be on the stablecoins that claim to be backed by fiat or other assets, because this is the part that requires trust. Trust can be abused, therefore requiring regulation around consumer protection.
In essence, protocols can't lie. Companies can (and often do).
