Sports, restrooms, locker rooms, prisons, shelters, and government identification all sort people by sex. Where gender identity and birth sex diverge, each of these requires a rule. The disagreements involve contested evidence and genuine value conflicts, and they differ by context.
These are separate questions that are often discussed as one. Competitive athletics involves physical performance; restrooms involve privacy and safety; prisons involve custody and vulnerability; identification documents involve administrative record-keeping. A rule that fits one context may not fit another.
Athletics policy is set by many separate bodies — school districts, state athletic associations, the NCAA, national federations, and the International Olympic Committee — which have reached different conclusions. Several international federations have moved toward eligibility rules based on birth sex or on hormone exposure during puberty for elite competition.
Research on retained physical advantage after hormone therapy is limited and contested, with small sample sizes and disagreement about which measures matter. Both sides cite studies; the evidence base is thinner than the confidence of the arguments built on it.
Prison housing is the highest-stakes context. Transgender women face documented risk of violence in men's facilities, while women's facilities house a vulnerable population with limited ability to avoid contact. Most systems now use individualized assessment rather than a categorical rule.