Senator Durant pitches digital settlement sandbox for pilot projects, then withdraws amendment

Senator Durant outlined Amendment 799 to establish a digital settlement sandbox in Massachusetts to test regulated stablecoin and blockchain‑based settlement for practical public sector uses — municipal payrolls, same‑day bond closings, refunds, and cross‑border remittances for public universities. He framed the plan as a cautious pilot with a 24‑month participation cap, annual reporting, a five‑year sunset, and compliance requirements including Bank Secrecy Act and sanctions screening. "This amendment directs the division of banks working with the treasurer, the administration, Administration of Finance, and the Massachusetts Technology Collaborative to create a limited and closely supervised sandbox for digital settlement applications," Senator Durant said.

Durant emphasized consumer protections, reserve disclosures, and the ability for regulators to suspend participation. He presented the proposal as an economic development opportunity to retain talent and innovation in the Commonwealth, but then said he would withdraw the amendment for consideration in another vehicle; the amendment was not adopted.