See this Washington Post article. Chair Smith’s draft AO is here. Additional analysis from Marty Lederman is here.
Smith’s decision here likely means that there will not be a majority of the FEC willing at this point to treat the 527 organizations as political committees and therefore subject to various limits, such as limits on contributions to the committees.
UPDATE: The last sentence was not sufficiently precise. Although Smith would treat some of these 527s as political committees, he would not alter the existing allocation rules between federal and non-federal funds, which would allow 527s to use their non-federal funds for a variety of election-related activities without limit.