Cytokines are secreted proteins that regulate diverse biological functions by binding to receptors at the cell surface to activate complex signal transduction pathways including the Janus kinase-signal transducer and activator of transcription (JAK-STAT) pathway. Stringent mechanisms of signal attenuation are essential for ensuring an appropriate, controlled cellular response. Three families of proteins, the SH2-containing phosphatases (SHP), the protein inhibitors of activated STATs (PIAS), and the suppressors of cytokine signaling (SOCS), inhibit specific and distinct aspects of cytokine signal transduction. The analysis of mice lacking genes for members of the SHP and SOCS families has shed much light on the roles of these proteins in vivo. In recent in vitro studies, the protein modifiers ubiquitin and SUMO (small ubiquitin-like modifier) have emerged as key players in the strategies employed by SOCS and PIAS to repress signaling.Cytokines regulate many cellular processes, often in concert and often via similar signal transduction pathways (1). Many cytokines are recognized by members of the hematopoietin family of transmembrane cell surface receptors, which oligomerize upon ligand binding, permitting the juxtaposition, cross-phosphorylation on tyrosine residues, and activation of receptor-associated Janus kinase (JAK) 1 family members. JAKs then phosphorylate tyrosine residues in the cytoplasmic domain of the receptor, creating recognition sites for signaling proteins with Src homology 2 (SH2) or other phosphotyrosine binding domains. Members of the signal transducers and activators of transcription (STAT) family are latent transcription factors with SH2 domains that are phosphorylated by JAKs upon binding to the receptor, enabling them to dimerize and enter the nucleus where they regulate gene transcription (for reviews see Refs. 2 and 3) (Fig. 1A).Rampant cytokine signal transduction can have disastrous biological consequences, and for this reason, signaling pathways are tightly controlled at multiple points (Fig. 1B). SH2-containing phosphatase (SHP) proteins are constitutively expressed and can attenuate cytokine signal transduction by dephosphorylating signaling intermediates such as JAK and its receptor. Members of the protein inhibitors of activated STATs (PIAS) family are also constitutively expressed and attenuate signal transduction by repressing STAT activity. The process of sumoylation has been implicated recently in PIASmediated repression of STAT activity. To date, the only known inducible inhibitors of cytokine signaling are the suppressor of cytokine signaling (SOCS) proteins, of which there are eight family members: SOCS1-SOCS7 and the cytokine-inducible SH2-domain-containing protein (CIS). SOCS proteins can recognize cytokine receptors or the associated JAKs and attenuate signal transduction both by direct interference with signaling and by targeting the receptor complex for ubiquitin-mediated proteasomal degradation.