26-year-old Dereck Morado was in jeopardy of being discharged, after a senior officer accused him of violating the military's "don't ask, don't tell" policy.
Morado is gay. He's been under scrutiny for a year and a half, after a senior sailor discovered a picture showing another man kissing his cheek.
President Obama signed a repeal of "don't ask, don't tell" in December, but it hasn't yet taken effect.
Morado said, "You're in a gray area there nobody wants to break the law nobody wants to go against policy even though the policy is on its way out."
The U.S. Navy would not talk specifically about Morado's case, but did say it will continue to follow the "don't ask, don't tell" policy until it is repealed.
A spokesperson also told Action News, if someone undergoes a hearing like Morado's and no policy violation is found, no further action would be taken.