Smith, 21, was the 33rd overall pick in the 2024 draft and spent last season with the Bucks. He appeared in 23 NBA games but logged just 122 total minutes.
After being waived in October, Smith was selected second overall in the G League draft and later signed a two-way deal with Houston. He has averaged 15.8 points and 5.1 rebounds in 19 G League games this season while shooting 50.9 percent from the field and 39.1 percent from three-point range.
Kelly, 23, appeared in 14 games for Dallas, averaging 3.1 points in limited minutes.