It seems to be treading dangerous waters to have a sexual relationship with a friend who is not "allowed" to fall in love with you. It's very difficult to control whether you fall in love with someone, and most people are not up to the task. It requires years of training to control your emotions and most people who claim to be doing so are actually just lying to themselves, until one day it explodes in a big mess.
If I were to have a sexual relationship with someone where I did not want it to become romantic (and thank goodness I don't have to do that), I would personally keep it on a strictly sex-only basis. I can't imagine spending social time with someone I'm sexually involved with and not having romantic feelings develop. When you start to blur the boundaries between friends and lovers, it's far to easy for someone to cross the boundary without intending it.
While I do agree with the others that there are some red flags about him claiming to have a DADT policy with no way for you to confirm it, it's ultimately your decision whether you want to believe him and whether you're prepared to handle the consequences if it turns out he's lying.
Gralson: my husband (works out of town).
Auto: my girlfriend (lives with her husband Zoffee).
The most dangerous phrase in the English language is "we've always done it this way."