On March 30, 2026, the U.S. Department of Labor (DOL) issued proposed regulations (Proposal) outlining how managers of employer-sponsored 401(k) plans and other participant-directed defined contribution plans (DC Plans) can include alternative assets in the plans they manage under the Employee Retirement Income Security Act of 1974 (ERISA). The Proposal was released in response to President Donald J. Trump’s executive order that was issued on August 7, 2025 (Executive Order). The Proposal constitutes a significant step by the DOL toward creating a legal framework for plan administrators to satisfy the duty of prudence when including alternative assets in DC Plans. Although the industry welcomes the DOL’s guidance, a number of outstanding issues remain before plan fiduciaries can confidently include alternative assets in DC Plans without facing sizable litigation risks. The industry is expected to weigh in on those and other salient points during the Proposal’s comment period, which is open until June 1, 2026. This first article in a two-part series summarizes the Proposal’s clarifications about how the duty of prudence under ERISA applies to alternative assets, considers its relationship with the Executive Order and offers analysis from legal experts about its practical impact on the industry. The second article will analyze the process-based, six-factor safe harbor in the Proposal that supplements the duty of prudence under ERISA, including some practical limitations faced by plan fiduciaries and private fund managers. See our two-part series on the Executive Order: “Key Takeaways and Considerations” (Oct. 2, 2025); and “Navigating ERISA Litigation Risks” (Oct. 16, 2025).