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International Chess Federation (FIDE) to ban and punish transgender players
(www.erininthemorning.com)
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Point is more categories are required now. Leave cis women as category then make other categories like open for all, trans people, people that identifies with the female gender, etc. Sure some categories might not have many competitors, but this way eveyone can play in the categories they feel comfortable.
The problem is that the way sports is funded is through competition and you can't have competition without competitors. Small categories are inefficient and will be removed as a business decision. Also it's kind of meaningless to say "I'm the best in X category" when there are 3 people in that category.