The SOCS proteins are induced by several cytokines and are involved in nega
tive feedback loops. Here we demonstrate that in 3T3-L1 adipocytes, insulin
, a hormone whose receptor does not belong to the cytokine receptor family,
induces SOCS-3 expression but not CIS or SOCS-2, Using transfection of COS
-7 cells, we show that insulin induction of SOCS-3 is enhanced upon Stat5B
expression. Moreover, Stat5B from insulin-stimulated cells binds directly t
o a Stat element present in the SOCS-3 promoter. Once induced, SOCS-3 inhib
its insulin activation of Stat5B without modifying the insulin receptor tyr
osine kinase activity. Two pieces of evidence suggest that this negative re
gulation likely results from competition between SOCS-3 and Stat5B binding
to the same insulin receptor motif. First, using a yeast two-hybrid system,
we show that SOCS-3 binds to the insulin receptor at phosphotyrosine 960,
which is precisely where Stat5B binds. Second, using confocal microscopy, w
e show that insulin induces translocation of SOCS-3 from an intracellular c
ompartment to the cell membrane, leading to colocalization of SOCS-3 with t
he insulin receptor. This colocalization is dependent upon phosphorylation
of insulin receptor tyrosine 960, Indeed, in cells expressing an insulin re
ceptor mutant ill which tyrosine 960 has been mutated to phenylalanine, ins
ulin does not modify the cellular localization of SOCS-3. We have thus reve
aled an insulin target gene of which the expression is potentiated upon Sta
t5B activation. By inhibiting insulin-stimulated Stat5B, SOCS-3 appears to
function as a negative regulator of insulin signaling.