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I've reviewed the [[transgender people in sports]] question and settled on thinking the Female/Open proposal is "most right".

In case you haven't heard it, this proposal which is backed or already implemented by several sports governing bodies is about keeping the Female competition category for cis women exclusively and changing Male into Open (to all). This has a number of advantages, although I can imagine some trans women feeling this is not ideal.

I initially thought Open/Non Binary could be a third category. But this was apparently already tried a few times and failed for lack of volume; maybe (hopefully?) it could be revisited later on.