Ugh, yes, the 3 AM "is my baby safe" panic is the worst!
Short answer: Yes, as long as you follow the rules!
Here’s the cheat sheet I made for myself:
1. BACK TO SLEEP. Always. No exceptions.
2. STOP ARMS-IN SWADDLING as soon as they show any sign of rolling (like pushing up or getting onto their side). This is the biggest safety rule.
3. TRANSITION to an "arms-out" sleep sack (wearable blanket) once they start trying to roll.
4. HIP-HEALTHY. Make sure the sack is roomy at the feet so they can do the "frog-leg" thing.
5. NO OVERHEATING. Feel the back of their neck. If they're sweaty, they're too hot.
My LO was a little furnace and would get so sweaty in fleece. We ended up using one of the Swaddle An bamboo sleep sacks because the fabric is super light and breathable. (Full disclosure: I help run their community, SWAN Nest, so I'm biased, but that's why I got involved with them!)
You're doing great, mama. This 0-3 month stage is a wild ride!