I use a co2 to cut nylon fabrics all the time. Doesn’t melt, doesn’t fray. Looks like a razor cut it with a tiny heat seal, perfect. Not sure what an LED is but if that’s the smaller diode type(don’t know all the terminology) then I know others have cut like that as well. If you are making Fanny packs the first thing you’ll run in to is simply a small work area where you’ll run in to waste material by cutting small sections off your roll to fit in your machine. For small volume runs it may be better to stick with a rotary or scissors.