Luis Aguilar and Elisse Walter, both Democratic members of the Securities and Exchange Commission, said the agency needs to seriously consider whether allowing broader advertising could unduly harm investors unless additional steps are taken.
The SEC's proposal would greatly loosen strict advertising rules to make it easier for hedge funds, private equity funds and other firms to raise capital in the private market.
"We must be vigilant about the potential consequences, particularly unintended consequences of a significant change like this, and consider ways to mitigate potential harms to the investors while preserving the rule's intended benefits" Elisse Walter said in an interview.
The rule is mandated by the Jumpstart Our Business Startups (JOBS) Act, a bipartisan bill signed into law earlier this year that eases securities regulations to help spur small-business growth and capital formation.
The SEC has already missed a congressional deadline to implement the rule. In August, it released a proposal for public comment, with Aguilar dissenting on concerns it failed to include even basic investor protections.