Germany´s government voted recently on a new legislation on gender recognition, which should replace the Transexuellengesetz. The Selbstbestimmungsgesetz presents a significant shift from the medicalised approach to a self-identification process, which through a more simplified procedures replaces invasive medical examinations. Through a qualitative content analysis and the lens of Judith Butler´s “Gender Trouble”, this research analyses the recent developments to capture progressions and prevailing challenges. The findings demonstrate the significant shift of the new legislation which acknowledges the autonomy and agency of adult individuals to self-determine their gender identity, which also emphasises the evolving acceptance of diverse gender identities. However, the analysis presents limitations where the law lacks clarifications or enforcement mechanisms to ensure legal protection for gender non-conforming people. Especially, aspects regarding a clear non-discrimination law, the inclusion of the house rights, age limits for minors, and more clear recognition of gender identities beyond the binary system are presenting possibilities for mistreatment.