It was purely political
No FTM (biological female who “transitions”) has ever been able to compete at the elite level against males. It’s not going to happen.
What we have been seeing is males talking medal after medal away from females.
Male skeletal structure, different shaped pelvis, stronger tendons, height, more muscle mass, etc. give an advantage.
All this doesn’t go away with only one year of testosterone levels < 10 nMol/L. Under the new Olympic rules, sex reassignment surgery is no longer required, and testosterone levels have to be less than 10 nMol/L for a year which is still three times more than women naturally produce.
So, to compete against females, he can still have his penis and testicles, and his testosterone can be three times what women produce. The average testosterone levels for women is about .5 to 2.5 nMol/L.
The new Olympic rules have NOTHING to do with logic or science. It was purely a political decision.