JellySaurus
As usual, women lose out. Or, in this context, perhaps I should say females lose out.
So transgender males are provided for, but not transgender females. Where would they compete?
Assuming a sex-based female category and an "open" category, I'm not sure trans men lose out more than trans women. A trans man taking testosterone could presumably compete in the open category just at a lower level. Similarly a trans woman taking oestrogen will lose (some) speed and strength so will take a performance hit in the open category. Both trans men and trans women need to make similar choices about continuing with high-level sport or physical transition.
Where I think there is a difference is safety in contact sports. I don't believe a trans man could play safely on a men's rugby team for example. And that risk only gets larger at less elite levels where players are more likely to (accidentally) make risky plays that cause injury to others.