Massachusetts residents can still chose "X" rather than male or female when applying for a driver's license or identification card. This option is based on state policy. It's not subject to the ban on gender-neutral IDs that President Trump has imposed for federal documents.
Everyone should be selecting gender neutral options. The federal government is trying to use gender to criminalize what you wear, where you can go, and who you love. The government does not need to know your gender. Keep private information private.