c-Rel is the cellular cognate of v-Rel, the avian reticuloendotheliosis virus strain T transforming gene. v-Rel encodes a phosphoprotein that is located in the cytoplasm of transformed spleen cells and in the nucleus of non-transformed fibroblasts, in contrast to the c-Rel protein, which is cytoplasmic. c-Rel has been shown to represent a constituent of the kB site binding transcription factor NFkB, which plays a crucial role in the expression of immunoglobulin k light chain gene. In contrast to c-Rel, v-Rel is truncated in its C-terminal transactivation domain and does not appear to function as a transcriptional transactivator. It has thus been postulated that v-Rel may interfere with the normal transcription of NFkB regulated genes and thus cause transformation by a mechanism analogous to v-ErbA, which binds to the thyroid hormoneresponsive region in certain erythroid genes needed for differentiation, but cannot be activated by thyroid hormone.