That sounds like a more ideal compromise, though I am not sure if even that is without its own set of issues.
Basically, athletic performance falls on the same gradient as masculinity. The more masculine your body is, the more capable you are as an athlete on average. If you are a trans woman taking T blockers/estrogen supplements, your body becomes more feminine, but in turn you lose much of that athletic capability.
So hypothetically, if I am a trans woman and an athlete, where I am paid based on how well I do, am I incentivised to not take T blockers/estrogen supplements, or take them in more limited doses, in order to be a more capable athlete? Basically, am I forced to compromise my gender identity for a better paycheck?
We could force every trans athlete to undergo lab work before every match to make sure their T levels are within a certain threshold, but then is that someone’s fault if their body is not being as responsive to the medication they’re taking, and now they’re out a job? Not to mention how that would basically force their medical history to be public knowledge.
I’m not sure I’m comfortable inviting these sorts of scenarios to occur, to be honest.