Much as I hate to say it, there are some technical complications in the world of elite women's sports, because women with androgenic DSDs are disproportionately overrepresented in elite women's sports. As you would expect, because the presence of androgens makes them faster / stronger etc. This has created a lot of problems for individual people in the past, Caster Semenya being the obvious example, but there have been others. This is why the IOC doesn't just go by XY chromosomes when deciding who goes in what category - they go by testosterone levels.
Where the IOC is wrong is in making the allowed testosterone level way higher than a natal woman would typically have. Laurel Hubbard managed to suppress Laurel's testosterone to a level where Laurel's levels were just within the 'allowed' category. Hence we have this farce.
Should go without saying that Laurel being in the women's category is grossly unfair - but I'm actually quite pleased about it as I believe it will cause a worldwide peakening.
As for the rules, I believe the IOC needs to step away from using testosterone levels as the test for sex categories and agree on some other measure that creates sex category fairness whilst not disadvantaging natal women with DSDs.
Or create a third, unisex category where trans people can compete, alongside anyone else who wishes.
Should also go without saying that elite sport is only one tiny part of the sports world. For most other areas, simple chromosomes / phenotype should be enough and it should not be complicated. The idea of having self ID in contact sports such as rugby and MMA is disgusting and will lead to a fatality or life changing injury at some point.