Hey,
I agree with everything that has been posted in the replies, as I think you do also, about the boundaries being blurred and how it can't be healthy. It sounds like you are actually more level headed on the issue than your T is.

Can I ask, as "friends" what do you do? What I mean is, what is it that makes you friends? Where you friends prior to being T/client? How did it come about?

You dont have to answer if you don't fee comfortable but maybe thinking about these things will help you decide who the relationship is benefitting.