Expression of human ␣ and long form of the  ( L ) subunits of type I interferon receptor (IFN-R) in mouse cells is sufficient to activate the Jak-Stat pathway and to elicit an antiviral state in response to human IFN␣2 and IFN. We demonstrate herein, however, that these cells respond to the antiproliferative effects of murine IFN␣ but not human type I IFNs. These results suggest that an unknown species-specific component is required for the antiproliferative effect of human type I IFNs. The absence of this component can be complemented by expressing the human  L chain truncated at amino acid 346. Thus, the distal region of  L appears to function as a negative regulator of the growth inhibitory effects of type I IFNs. Further studies looking for possible targets of the  L regulatory domain demonstrated that this region associates with a tyrosine phosphatase. These results suggest that a protein associated with the negative regulatory domain of  L , likely a tyrosine phosphatase, plays a role in regulating the growth inhibitory effects of human type I IFNs.The most prominent effects of type I interferons (IFN) 1 are the antiviral and antiproliferative actions (1). These effects are mediated through binding to the type I interferon receptor (IFN-R or IFN␣R), which is composed of two subunits termed ␣, or IFNAR1, and , or IFNAR2 (2-10). The genes encoding the different subunits of the type I IFN-R are clustered in the q22.1 region of human chromosome 21 (6,7,(11)(12)(13)(14)(15)(16)). This region also harbors an orphan class II cytokine receptor, the CRFB-4 gene, which is encoded on human chromosome 21 between the genes for the  chain of the IFN␣R and the  subunit of the IFN␥R (10, 17). Expression of the human ␣ and long form of the  chain ( L ) subunits in mouse L-929 cells fully reconstitutes the activation of the Jak-Stat pathway and the induction of an antiviral state in response to HuIFN␣2 and HuIFN (9). Furthermore, only the first 82 amino acids of the cytoplasmic domain of the  L chain are required to activate the Jak-Stat pathway and induce the antiviral effect in response to IFN␣2 (18).The ␣ and  subunits of the type I IFN-R associate with protein tyrosine kinases of the Jak family (4,8,18). The ␣ subunit interacts with Tyk2 (4,19,20) while the cytoplasmic domain of the  L contains a docking site for Jak1 (18). Binding of type I IFNs to their receptor triggers rapid tyrosine phosphorylation of Tyk2 and Jak1 kinases, type I IFN-R subunits (21-25), and Stat factors (reviewed in Refs. 26 -28). Regulation of tyrosine kinase activity is mediated in most cytokine systems by protein tyrosine phosphatases (PTPs). For example, SHP1 (also named SHP, SHPTP1, HCP; PTP1C, Ref. 29), a predominantly hematopoietic tyrosine phosphatase that regulates the activity of the erythropoietin and IL-3 systems (30 -35), has also been implicated in IFN␣ signaling in hematopoietic cells (36,37). However, the role of SHP1 in other cell types is not clear since this PTP is mainly expressed in hematopoietic cells, wher...