Writing TG stories in 2025

What do you do if you're thinking about writing a story focused around a transgender character, in 2025 America where institutionalized transphobia seems to be ubiquitous?

Every so often, my mind wanders over to my stack of unwritten stories, but when I think about putting them into words, I'm not sure how to deal with the situation where it seems to become more illegal to be trans every day.

I see sort of four ways to go:

1. Set it in the recent past, when society was more accepting of transfolk. (Fortunately, the continuing stories I've left hanging just fall naturally into this category, so I should really just deal with those and ignore the unwritten ones.)
2. Set it in an assumed future where we've become more accepted again.
3. Set it in a fictionalized version of the present, an alternate timeline where the transphobes didn't win.
4. Or deal with reality and make the current tensions part of the focus of the story.