I honestly think that's fair if it's a physicality-based activity, being trans is fine, but you still have to recognize that if your born physiology is different than the gender you wish to identify with then you still have a body type that might provide an unfair advantage, like another person said if it's non-physically intensive stuff like chess than there's no issue... But also, bathrooms too, I feel like it's a bit counterintuitive that people can enter either bathroom just by saying "I identify as".
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