The legality of that really depends on your province/state laws.

Here in Ontario any bout (for cash or fun) that doesn't use the standard weight gloves is deemed a prize fight and thus is illegal.

I'd imagine there are simular laws in America, but as long as death isn't the outcome of the fight, they can't really say much.

and for Warrior James, I have been doing great with a Goju Ryu/Boxing/Greco Roman Wrestling mix in MMA so I have no idea where you get what your saying, me thinks you don't know what your talking about.