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If you segregate by sex alone then trans men get a big advantage.

The rulings do not mean they now segregate by sex alone. Someone who was AFAB and does not have an SRY gene would was taking HRT would not qualify for the female division due to the HRT.

A trans man who was not taking HRT could compete, though.

The key distinction is that gender identity is not what's being tested.

Because they're taking testosterone?

Wouldn't they be barred based on using banned substances?

They're not all taking banned substances. Case in point, Hergie Bacyadan and Elis Lundholm competed in the last Summer and Winter Olympics respectively.

Both Hergie Bacyadan and Elis Lundholm has not undergone any hormone replacement therapy or surgery, and competes in the women's divisions. Their status as trans men has nothing to do with their eligibility to participate.

This would be like if two trans women, who has not undergone any hormone replacement therapy or surgery, would compete in men's divisions.

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