In the development of a successful regulatory strategy for nanotechnology, it is vital not to overlook the role of the military in the development and dissemination of potentially harmful nanotechnology applications. This issue is made even more important by the fact that the military could lay a large role in the regulation, or lack, of civilian and private sector nanotechnology research and development. The Department of Defense (DOD) lists nanotech as one of‘its major strategic research programs, and spends more money on nanotechnology research than many other areas. Some examples of programs sponsored by the DOD include MIT's Institute for Soldier Nanotechnologies and the Defense University Research Initiative on NanoTechnology, which aims to support and promote nanotechnology research relevant to national defense at US. universities.
Current military nanotech programs cover a wide range of purposes, from stronger materials to better explosives. Nanomaterials in clothing and equipment can impart greater strength and less weight. In the medical realm, they can be used to diagnose and treat wounds and other injuries. They are also often used in electronic devices and as sensors for a wide range of military as well as mundane purposes. Much research is being done into using nancomposites in high energy munitions, and in coatings for such explosives. Many medical uses are being developed as well including biological motors and sensors, prosthetic interfaces, and even performance enhancement for soldiers.
Bulletproof Nanomaterials, Joseph Hsu. https://prezi.com/q6o_mkcwbdoq/graphene/
There are several important reasons why military use of nanotechnologies must not be overlooked in developing a regulatory policy. First, not only do these nanomaterials have the same potential dangers as they would with private sector use, but may have a much higher chance of disbursement into the environment due to their military applications. Thus their environmental and health impacts could be much larger than that of nanomaterials under normal use. For instance, high impact blasts can distribute huge amounts of toxic particles into the air, where they can be carried great distances by wind currents, as is already the case with depleted uranium. Also, the widespread use of nanomaterials as battlefield sensors could leave a lasting environmental impact.
Effects of Depleted Uranium: Gulf War Syndrome Map, Jeff Dahl. 
More importantly I believe, is the role the military could play in setting regulatory policy for nanotechnologies. If it were to be decided that nanotechnology advances could pose too large a threat to national security, research could become strictly classified and off limits, or legal red tape could make much private research and manufacture difficult and unprofitable. Besides the military advantage that classification would bring, this scenario could be brought about by some kind of public health disaster related to nanotech and the ensuing public outcry.
A final concern is the devastating consequences that could arise from military destabilization or application to chemical and biological warfare. Nanotechnology innovations could potentially upset the current balance of power if one country progressed faster than others. Also, nanotechnologies can vastly improve delivery of toxic substances into cells and tissue, making the possibility for devastating biological warfare much more of a reality.