Against US laws in some states. I think there was even a discussion about which part of the country SH is registered in to check this out.
That said, the original post that started this "war" was about --
how much does SH do to moderate such content? I still don't know, but apparently reporting stuff with proofs can get a story banned? If that is indeed what happened as we do not have information about that.
So your question about what is allowed and what is enforced is interesting because we still don't really have an answer to that...
. Tony just said to report all sus stories WITH proofs added and the mods will decide.