There has been a recent proposal in the United States to codify the arm`s length standard (ALS), which is currently only found in regulations as well as in US treaties. This article argues that this proposal is misguided because as long as the ALS is not codified, the US is free to adopt Pillar 1 without changing its domestic tax law by ratifying the Multilateral Tax Convention (MLC). Moreover, the history of the ALS from when it was first introduced in the 1932 US-France tax treaty shows that it was always intended to protect the interests of US multinationals at the expense of the fisc, and should be discarded.