With regards to CE marks and all that, the only considerations i can think of from a safety point of view are fibre shedding and ribbons.
As babies tend to suck and chew things yarns for babies tend to be made so as not to shed lots of fibers, don’t want the little darlings getting fur balls. Also Ribbons and cords(not such and issue with a blanket) needs to be securely attached and not of a length a child can garrot itself with.
Strangely the second of those points is a regulation for manufactured clothes – but isn’t noted on some knitting patterns for babies. I check patterns before publications for a large pattern house and am often surprised that the same rules dont seem to apply – even if only to add them as guidance.
Sounds lovely though – any pictures?