I know there have been many discussions about this in the past few years (links below).
Are there plans to rename the "Gender" field to "Sex" and limit the categories to just "Male" and "Female" to align with the new NCES/IPEDS terminology per the Trump Administration's executive order of January 20, 2025?
If so, I expect a lot of schools will create a "Gender Identity" custom field.
Student Profile Gender Options (Today)