It could mean the reduction of Federal protections for people who identify as transgender.
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"It's not about delegitimizing us as much as it's about destroying the fact that transgender people exist," said San Francisco resident, Martin Rawlings-Fein.
RELATED: Bay Area transgender community reacts to Trump administration's proposal to redefine gender
Rawlings-Fein identifies as a transgender man. He's married with two kids. He is also a candidate for the San Francisco School Board.
According to a memo obtained by the New York Times, The Department of Health and Human Services is spearheading an effort to define sex as either male or female, determined by the genitals a person is born with.
Many believe narrowing the definition sends a terrifying message to the transgender community which could jeopardize legal recognitions enacted by the Obama administration.
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The Transgender Law Center in Oakland is prepared to fight if the draft memo from the Trump administration advances.
"This draft memo is the latest attack in what has been a barrage by the Trump administration to degrade our Transgender committee," said Kris Hayishi, executive director of the Transgender Law Center.
"We will sue if this moves forward," Hayashi added.