Homeodomain-only protein/not expressed in choriocarcinoma clone 1 (HOP/NECC1) is a newly identified gene that modifies the expression of cardiac-specific genes and thereby regulates heart development. More recently, HOP/NECC1 was reported to be a suppressor of choriocarcinogenesis. Here, we examined the temporal expression profile of HOP/NECC1 in wild-type mouse placenta. We found that E8.5-E9.5 wild-type placenta expressed HOP/NECC1 in the giant cell and spongiotrophoblast layers. HOP/NECC1 (؊/؊) placenta exhibited marked propagation of giant cell layers and, in turn reduction of spongiotrophoblast formation. We demonstrated SRF transcriptional activity increased in the differentiating trophoblasts and forced expression of SRF in a trophoblast stem (TS) cell line induces the differentiation into giant cells. Negative regulation of SRF (serum response factor) by the binding of HOP/NECC1 protein contributed at least in part to the generation of these placental defects. Gradual induction of HOP/NECC1 in response to differentiation stimuli may result in the decision to differentiate into a particular type of trophoblastic cell lineage and result in non-lethal defects shown by the HOP/NECC1 (؊/؊) placentas.The development of the placenta starts with differentiation of the outer layer of the blastocyst, the trophectoderm. After implantation, the mural trophectodermal cells contribute to primary trophoblast giant (TG) 2 cells and the polar trophectoderm differentiates to extraembryonic ectoderm (ExE). ExE grows to form the ectoplacental cone (EPC), which contains precursor cells that give rise to spongiotrophoblasts (SpT) and secondary TG cells. Most TG cells originate from precursor cells located in the EPC, and partially from SpT (1). The TG cells are polyploid as a result of endoreduplication (repeated rounds of DNA synthesis without cell division) (2, 3).In the course of exploring the molecular mechanism of gestational trophoblastic diseases, we have isolated a candidate choriocarcinoma suppressor gene (NECC1, not expressed in choriocarcinoma clone 1) (4). Normal placental villi express NECC1 but choriocarcinoma cell lines and tissue samples fail to express it. We transfected the NECC1 gene into choriocarcinoma cell lines to characterize its functions as a tumor suppressor gene and observed remarkable alterations in cell morphology (4).This unusual type of homeodomain protein also functions during cardiac development. Genetic inactivation of the mouse orthologue HOP (homeodomain-only protein) results in a partially penetrant phenotype of embryonic heart failure and lethality (5, 6). HOP/NECC1-deficient adult mice display conduction defects (7). HOP/NECC1 contains a unique homeodomain that is incapable of sequence-specific DNA binding (5, 6). Instead, HOP/NECC1 functions by interacting with SRF to inhibit DNA binding by recruiting histone deacetylase (HDAC) activity (8). This interaction results in decreased transcription of SRF-dependent cardiomyocyte-specific genes (5, 6).The fact that HOP/NECC1 is expressed in h...