Y-box protein-1 (YB-1) is a known negative regulator of collagen (Col) expression by two different mechanisms, acting directly through binding to an interferon-␥ response element within the col1A2 promoter and/or by physically interacting with p300/ Smad3, thereby abrogating the stimulatory effect of transforming growth factor- (TGF-). Here, we report that YB-1 activation via the Jak1 signaling pathway is required and sufficient to confer interferon-␥-dependent activation of the smad7 gene. By binding to a bona fide recognition site within the smad7 promoter, YB-1 up-regulates smad7 transcription, which was additively enhanced by autoinhibitory TGF- signaling. Importantly, the anti-TGF- effect was not only supplied by induced Smad7 expression but was recapitulated in the context of the col1A2 promoter, where YB-1 overexpression abolished the trans-stimulatory TGF- effect in a dominant fashion. In conclusion, YB-1 is the main target of interferon-␥ signaling via Jak1 that exerts antifibrotic action by both interference with TGF- signaling and direct down-regulation of collagen expression.Y-box proteins belong to a family of DNA-and RNA-binding factors, also named cold shock proteins, that are highly conserved during evolution and have been shown to function as regulators of gene transcription and translation (1, 2). A wide range of nucleic acid structures are reported to be specifically bound by Y-box proteins, most of which harbor an inverted CCAAT-box (ATTGG) as the core binding site. YB-1 3 was originally identified by an expression cloning strategy using the Y-box of the major histocompatibility complex class II and epidermal growth factor receptor promoters as probes (3,4). It is a ubiquitously expressed early response gene that is induced among others following interleukin-2 stimulation of cloned T helper lymphocytes (5) and after partial hepatectomy (6). YB-1 has been implicated in the regulation of proliferation-associated genes (e.g. thymidine kinase, proliferating cellular nuclear antigen, and epidermal growth factor receptor (7)), and most recently a direct effect on p53 protein expression and interaction with p53 has been described (8). In regard to ECM synthesis and deposition, YB-1 was identified as a negative regulator in glomerular mesangial cells, where it trans-activates transcription of the matrix metalloproteinase-2 gene via combinatorial interactions with p53 and AP-2, which may be antagonized by nonmetastasizing protein 23 (Nm23) (9). In human embryonic kidney cells and dermal fibroblasts, a repressive function of YB-1 on the col1A2 gene promoter was reported, which is mediated by IFN-␥ (10). Screening of a human fibroblast cDNA expression library with a radiolabeled col1A2 IFN-␥ response element (IgRE) probe exclusively yielded clones with a sequence identical to YB-1 (10). Studies with a mutated IgRE and expression vectors containing partially deleted YB-1 cDNAs that were GFP-tagged for detection by immunofluorescence microscopy indicated that IFN-␥ facilitates nuclear translocation ...