This is on the list of CPSIA approved items:
Dyed or undyed textiles - cotton, wool, hemp, nylon, etc. - , including children’s fabric products, such as baby blankets, and non-metallic thread and trim. This does not include products that have rhinestones or other ornaments that may contain lead or that have fasteners with possible lead content (such as buttons, metal snaps, zippers or grommets
