Familiar with the words “emotional affair”? Because you’re likely in one.
For those not, an “emotional affair” is when a married person gets far closer, emotionally, to someone than they are to their spouse. There’s no sex involved, so the words “grey area” really don’t even begin to sum it up.
In this case, I’d back away. Whether he has any further intentions or not, he’s married. If he wants a relationship, asking you to cheat is wrong. Asking you to sit through this stuff is wrong, also. So get out and find somebody who will treat you right.