Republican presidential front runner Donald Trump has criticised North Carolina's transgender bathroom law, saying it has caused unnecessary "strife".
Mr Trump said transgender people should be able to use whichever bathroom they choose.
The HB2 bill requires everyone to use restrooms matching the gender on their birth certificates.
"You leave it the way it is," the Manhattan property magnate told NBC's Today show on Thursday.
"There have been very few complaints the way it is.
"People go, they use the bathroom that they feel is appropriate. There has been so little trouble."
"And the problem with what happened in North Carolina is the strife and the economic, I mean, the economic punishment they’re taking."
Today show co-host Matt Lauer asked Mr Trump: "So if Caitlyn Jenner were to walk into Trump Tower and wanted to use the bathroom, you would be fine with her using any bathroom she chooses?"
Apparently undeterred by Jenner's support for his rival Ted Cruz, Mr Trump replied: "That is correct."
His remarks prompted rare praise from his sworn political enemies among the Democrats.
The North Carolina Democratic Party said: "Today Donald Trump joined the growing list of business leaders against HB2."
But Mr Trump’s comments may dismay the social conservatives who backed HB2 and also swept him to victory throughout much of the southern US states earlier in the primary season.
It could signal a tonal shift in his campaign as he reaches for the party's Republican presidential nomination and pivots to broaden his appeal to younger and independent voters.
North Carolina's law has cost the state hundreds of jobs as PayPal and Deutsche Bank halted proposed expansions in the state.
Bruce Springsteen cancelled a concert in Greensboro because of the law, while others, such as American Airlines and Apple, have raised concerns.
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