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International Chess Federation (FIDE) to ban and punish transgender players
(www.erininthemorning.com)
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I'm fairly certain that this is already the case, and what's being done here as well. Specifically that there isn't a "men's" category, there's open, and there's women's. In chess specifically it's a strange situation. My understanding is that the existence of "women's chess" isn't due to any inferiority of play (though there's undoubtedly some sexism in its origin) but rather as a way to entice women to play and grow the sport. There's no restrictions on a woman being granted the grandmaster title, but a man can't hold a Women's Grandmaster title.
Not keeping your women specific titles as a trans man at least tracks for that. As to not being able to compete as a trans woman I don't really see the point. I could see an argument for resetting your ELO because there is a lower ELO pool in women's chess (due to population, nothing enforced) and your ELO could be unduly skewed, but idk. That's kinda getting beyond my competitive chess knowledge
Tldr; this is probably dumb and misguided, but maybe not as hostile as the headline first looked to me