The peptidase activities of eukaryotic proteasomes are markedly activated by the 11 S REG or PA28. The three identified REG subunits, designated ␣, , and ␥, differ significantly in sequence over a short span of 15-30 amino acids that we call homolog-specific inserts. These inserts were deleted from each REG to produce the mutant proteins REG␣⌬i, REG⌬i, and REG␥⌬i. The purified recombinant proteins were then tested for their ability to oligomerize and activate the proteasome. Both REG␣⌬i and REG␥⌬i formed apparent heptamers and activated human red cell proteasomes to the same extent as their full-length counterparts. By contrast, REG⌬i exhibited, at low protein concentrations, reduced proteasome activation when compared with the wild-type REG protein. REG⌬i was able to form hetero-oligomers with a single site, monomeric REG␣ mutant and with REG␣⌬i. At low concentrations, the REG␣⌬i/REG⌬i hetero-oligomers stimulated the proteasome less than REG␣/REG oligomers formed from wild-type subunits, and the reduced activation by REG␣⌬i/REG⌬i was due to removal of the REG insert, not the REG␣ insert. These studies demonstrate that the REG␣ and REG␥ inserts play virtually no role in oligomerization or in proteasome activation. By contrast, removal of REG insert reduces binding of this subunit and REG␣/REG oligomers to proteasomes. On the whole, however, our findings show that REG inserts are not required for binding and activating the proteasome. We speculate that they serve to localize REG-proteasome complexes within cells, possibly by binding components in endoplasmic reticulum membranes.The proteasome is a major proteolytic organelle in the cytosol and nucleus of eukaryotic cells (1-3). The enzyme is a cylindrical structure containing 28 subunits arranged as four rings of seven subunits each. The two end rings are composed of catalytically inactive subunits belonging to the ␣ subunit family based on homology to proteasome subunits from the archebacterium, Thermoplasma. The two central rings are composed of members of the  subunit family (4 -6), some of which are proteolytically active (7). Crystal structures of Thermoplasma and yeast proteasomes reveal that the  subunits form a central proteolytic chamber far from the particle's surface and that entry to this central chamber is greatly restricted (8, 9).By itself, the proteasome does not degrade intact proteins. Association with a 19 S regulatory complex converts the proteasome to the 26 S protease, an energy-dependent enzyme capable of degrading intact proteins (10 -13), including those marked by ubiquitin (14). The proteasome also binds an 11 S protein complex, which we have termed REG and others have named PA28 (15-17). REG binding to the proteasome can stimulate peptide hydrolysis as much as 100-fold. Human red blood cell REG is composed of two ϳ30 KDa subunits, REG␣ and REG. These two proteins are closely related to each other and to a third protein, REG␥ (18). The three proteins show extensive sequence similarities, except for a region of 15-32 amino a...