The stabilization of beta-catenin is a key regulatory step during cell fate
changes and transformations to tumor cells. Several interacting proteins,
including Axin, APC, and the protein kinase GSK-3 beta are implicated in re
gulating beta-catenin phosphorylation and its subsequent degradation. Wnt s
ignaling stabilizes beta-catenin, but it was not clear whether and how Wnt
signaling regulates the beta-catenin complex. Here we show that Axin is dep
hosphorylated in response to Wnt signaling. The dephosphorylated Axin binds
beta-catenin less efficiently than the phosphorylated form. Thus, Wnt sign
aling lowers Axin's affinity for beta-catenin, thereby disengaging beta-cat
enin from the degradation machinery.