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The government should not have this level of power. Executive Order or legislation, it doesn't matter, a sports league should be able to set its own policies for membership. As per the Constitutional right to freedom of assembly.
Sports: more inclusive than the government since 1947.
This sounds like a good way to foster vast inequality. You'll have good places where people are included and able to grow up into reasonable people, then you'll have other places where people are utterly ostracized and never even have a chance. This isn't some magical capitalist world where people can just pick up and move to wherever is 'best', there will be people who are stuck. When those people don't have the resources they need, the cycle will just end up perpetuating again, and the inequality builds on itself.
The government has to have the ability to keep rogue states from declaring swathes of the population as second class citizens. Yes, there's the obvious downside of "What happens if" - but we're in this together and we have to try for the only tenable solution. That growing inequality will affect the 'good' areas, even if they put their fingers in their ears and say "lalalalalala not my problem".
"But what about the sanctity of women's sports?" - People with no interest whatsoever in women's sports.