I can't see how the end result won't be that they'll have to stop them competing, or setup specific categories. Because even if, for sake of argument someone was 100% in favour of transgender people being treated and referred to as the gender they believe themselves to be (mentioning it only because that's a separate ethical debate and is frankly irrelevant to the crux of the issue) even IF one goes along with that, there's NOTHING that's going to get around the fact that they've gone part or most of the way through a male puberty and even with hormone blockers they're going to have bigger bone structure and superior cardio vascular development - effectively the equivalent of had they been born biologically female and taken steroids from age 12 or so in moderate dosages. Where I'm from in Australia there was actually a bit of a legal battle going on a few years back on the same issue. We've recently gottent afl football womens league off the ground in a fairly serious official (rather than just grass roots local club level) way. And a trans athlete was fighting to be allowed to play in the womens league. Now all due to respect to the person, in question, but from a purely biological and real world perspective they are something like 6'2 and 230lbs and literally 2 heaths wide. feel free to google Hannah Mouncey if you think I'm kidding. Now like it or not, even on female hormones and if they've had their surgery so they have no testosterone being produced - they are in fact on the average to large side for a MALE AFL player, much less the womens league.
You'll note I'm discussing male to female transgender athletes here, since that's precisely who are winning when this occurs. Female to male transgender athletes are unlikely to ever be an issue for precisely the same reason they DIDN't go through a male puberty and are at a disadvantage. They only exception that I'm aware of is one that was on the news a few years back where an american female to male wrestler was dominating in their sport because although they were on testosterone, it was low dose and deemed acceptable - and they were still competing against females. they would have been a non event competing against males of the same age. Actually I think I saw it on one of elgintensity's videos but can't recall for certain.
To make this slightly getbig relevant - I actually saw the movie 'transformer' about matt or now jenae kroc . Wouldn't recommend it particularly - I honestly think that whichever side of the transgender issue (in general not in sport) you happen to be on, watching it will only strengthen your opinion, but anyway - in it there was an early days effort and they set up a powerlifting meet specifically for transgender people, so that there was effectively an even playing field or an attempt at one. It was a small low key even but probably - given the reality of the world we now live in, likely the way things might have to go.