Why not just let the military create their own policy on this issue?
(a) Any person subject to this chapter who engages in unnatural carnal copulation with another person of the same or opposite sex or with an animal is guilty of sodomy. Penetration, however slight, is sufficient to complete the offense.
(b) Any person found guilty of sodomy shall by punished as a court-martial may direct.
That's the way it was before DADT was imposed on them by the Clinton administration/congress.
Because the Constitution says that it is Congress, not the military, which is to "make Rules for the Government and Regulation of the land and naval Forces." (U.S. Const., Art. I, sec. 8, cl. 14).