Transcriptional activity of the TATA-binding protein (TBP) is controlled by a variety of proteins. The BTAF1 protein (formerly known as TAF II 170/TAF-172 and the human ortholog of Saccharomyces cerevisiae Mot1p) and the NC2 complex composed of NC2␣ (DRAP1) and NC2 (Dr1) are able to bind to TBP directly and regulate RNA polymerase II transcription both positively and negatively. Here, we present evidence that the NC2␣ subunit interacts with BTAF1. In contrast, the NC2 subunit is not able to associate with BTAF1 and seems to interfere with the BTAF1-TBP interaction. Addition of NC2␣ or the NC2 complex can stimulate the ability of BTAF1 to interact with TBP. This function is dependent on the presence of ATP in cell extracts but does not involve the ATPase activity of BTAF1 nor phosphorylation of NC2␣. Together, our results constitute the first evidence of the physical cooperation between BTAF1 and NC2␣ in TBP regulation and provide a framework to understand transcription functions of NC2␣ and NC2 in vivo.Initiation of gene transcription by eukaryotic RNA polymerase II (pol II) is tightly controlled by a multitude of regulatory factors. The concerted action of these factors results in the formation of the pol II preinitiation complex (32, 33). Recent studies have deepened our knowledge of the regulation of the steps leading to this. It is also becoming clear that the mode and sequence of the recruitment of the basal transcription factors vary among promoters (7). The preinitiation complex consists of several basal transcription factors, including TATAbinding protein (TBP), which plays a central role in the assembly process. This is underscored by the fact that transcription of the majority of cellular genes in vivo requires TBP (11). In human cells several factors were shown to bind directly to and regulate the activity of TBP in pol II transcription. The beststudied factors are TBP-associated factors (TAFs), which together with TBP form the TFIID complex (25,40). Others include the BTAF1 protein (TAF II 170/TAF-172) and the NC2 (Dr1-DRAP1) complex.BTAF1 and its Saccharomyces cerevisiae ortholog Mot1p form stable complexes with TBP in cell extracts (37,38,43,44; for a review, see reference 35). The observation that a large proportion of TBP is complexed with BTAF1 as the B-TFIID complex gives rise to the notion that BTAF1 is an important regulator of TBP function (44). Indeed, in vitro studies show that the B-TFIID complex is able to bind promoter DNA and support transcription (18,34,44). On the other hand, BTAF1 and Mot1p proteins contain dATPase activity, which is involved in the dissociation of TBP from DNA in an ATPdependent stroke. This activity can explain their negative effect on transcription (5,34,36). In accordance with a dual role of Mot1p in transcription, mRNA expression profiling and mutational analyses indicate that Mot1p affects transcription both positively and negatively (1,6,10,12,15,26,27,39). The positive role of Mot1p is strengthened by observations that it is present at the sites of certai...