Last week, the CPSC exempted (links to PDF) certain things from 3rd party testing for lead. Textiles and leather have been exempted from lead testing. By extension, dyes and some inks used in textile printing have been exempted. There are some big caveats though.
1. Screen prints, coatings, paints have not been exempted. This means apparel that has been treated this way will have to be tested.
2. Findings and trims, such as buttons, zippers, snaps, plastic components will have to be tested. Buttons made of bone or wood are exempted provided they use only coatings or finishes which are exempt.
3. Bling such as rhinestones and crystals are banned.
The CPSC took a component approach in issuing these exemptions. One can infer that the CPSC is seriously considering some kind of component testing allowance. It may or may not happen. The CPSIA, the actual text of the law, does not allow component testing. While it is a more common sense way to approach the problem, the realty is that this may open up the CPSC to lawsuits by special interest groups who do not want component testing.
Another concern is that the CPSC will be policing the market place. They will buy product and test it. Anything that fails, including exempted materials, will be subject to heavy fines and even jail time. It will be up to individual companies to decide whether they will continue to test or not. There is a liability problem for failing to comply to the exactness of the regulations.
Also remember that other regulations still apply. In particular, the tracking labels and phthalate testing (for certain products) are in force.