The NF-κB and Rel transcription factors regulate expression of genes involved in such diverse processes as inflammation, immune response, differentiation, proliferation, and apoptosis (23, 32). NF-κB plays a central role in innate immunity and is activated by signals initiated by tumor necrosis factor receptor, interleukin-1 receptor, and Toll-like receptors. NF-κB is also activated in T and B cells during the adaptive immune response (26, 37, 55). Activation of T lymphocytes requires interaction of the T-cell antigen receptor (TCR) with an antigen peptide presented by a major histocompatibility complex. While TCR engagement is essential for T-cell activation, productive T-cell activation requires additional costimulatory receptors, of which CD28 is the most prominent (2, 54). TCR/CD28 costimulation initiates a series of signal transduction events which modulate the activity of several nuclear transcription factors, including NF-κB, AP-1, and NF-AT, ultimately leading to the activation, differentiation, and proliferation of T lymphocytes (42). In both B and T cells, signal transduction from antigen receptors to NF-κB requires protein kinase C (PKC) isoforms. In B lymphocytes, PKCβ appears to be the major isoform that transduces signals from the B-cell receptor to NF-κB (53, 59). A great body of biochemical, pharmacological, and genetic evidence supports a crucial role of PKCθ for activation of NF-κB and interleukin-2 expression in response to TCR stimulation in T cells (29). Nevertheless, conflicting results have been obtained regarding the extent of PKCθ contribution to NF-κB activation in peripheral T cells (45, 60). The protein Bcl10, originally cloned from the chromosomal translocation t(1;14) (p22;q32) found in mucosa-associated lymphoid tissue (MALT) B-cell lymphomas (69, 73), is also essential for antigen receptor-induced NF-κB signaling in B and T cells (51). Lack of Bcl10 selectively blocks antigen receptor-mediated NF-κB activation without affecting AP-1 activation, suggesting that Bcl10 acts downstream of PKCs in an NF-κB-specific pathway. Recently, it was demonstrated that Bcl10 controls the development and function of mature B cells (70). Overexpression of Bcl10 activates NF-κB (33, 69), but the mechanism by which Bcl10 promotes NF-κB activation is not fully understood. Transfected Bcl10 is phosphorylated under certain conditions (20, 62), but the responsible protein kinase has not been identified, nor has the function of this phosphorylation been elucidated. Bcl10 contains an N-terminal caspase recruitment domain (CARD), which mediates self-oligomerization and is necessary and sufficient for NF-κB activation (33, 58). Bcl10 has been shown to associate with the paracaspase Malt1 (39), and target disruption in mice reveals that Malt1 operates downstream of the TCR, PKCθ, and Bcl10 in the IKK/NF-κB signaling cascade in T lymphocytes (50, 52). Furthermore, Bcl10 binds to proteins of the membrane-associated guanylate kinase (MAGUK) family, which include CARD9, CARD10 (Bimp1 or CARMA3), CARD11 (Bimp3 or CARMA1), and CARD14 (Bimp2 or CARMA2) via CARD-CARD interactions (9, 10, 20, 66). Recent experiments have demonstrated that the Bcl10 binding protein CARMA1 is bridging antigen receptor proximal signaling in both B and T cells to JNK activation and Bcl10-mediated NF-κB induction (19, 25, 30, 47, 65). CARMA1 probably acts through coupling Bcl10 and PKCθ and other potential regulators to the membrane. Congruently, PKCθ, CARMA1, Bcl10, and IKKs are recruited to the membrane and into lipid raft microdomains in response to TCR ligation (13, 19, 67). In these lipid rafts, IKKs are most probably activated either through direct phosphorylation by an unknown IKK kinase or through the induction of structural changes in the IKK complex, which is subsequently activated through enhanced autophosphorylation of IKKβ/α (61). Much genetic and biochemical evidence indicates that the RING finger-containing ubiquitin ligases c-Cbl and Cbl-b and the HECT (homology to the E6-AP carboxyl terminus) domain ubiquitin ligase Itch are critical negative regulators of T-cell activation (8, 18). Cbl-b-deficient mice show increased susceptibility to spontaneous or induced autoimmune disease (7, 11, 17), while mutation or lack of Itch results in aberrant activation of the immune response (16, 44). T cells from mice engineered to lack both c-Cbl and Cbl-b did not efficiently downmodulate surface TCR due to a defect in trafficking of the internalized TCR to the lysosomal compartment, resulting in sustained TCR signaling (41). Ubiquitination may target cellular proteins for destruction by the 26S proteasome (27) or direct trafficking of membrane-anchored proteins to lysosomal vesicles for degradation (31, 40). Even though it is evident that ubiquitin ligases play an important role in negatively regulating T-cell activation, considerably less is known about the signaling molecules that are substrates for degradation or the mechanism through which degradation occurs. Here we demonstrate that, in T cells, Bcl10 is posttranslationally modified by phosphorylation and subsequently degraded in response to phorbol myristate acetate (PMA) stimulation or CD3/CD28 coligation. Degradation of Bcl10 involves activation of PKCs and is accompanied by ubiquitination and trafficking to lysosomal vesicles. The CARD of Bcl10 serves as a recognition motif for degradation. We show that Bcl10 is a substrate for ubiquitination by the HECT-type ubiquitin ligases NEDD4 and Itch, and loss of Bcl10 mediated by these E3 enzymes interferes with NF-κB activation. Depletion of Bcl10 correlates with cessation of TCR-induced NF-κB and IKK activation without affecting signaling to JNK. These results define a new negative-feedback mechanism in which downregulation of Bcl10 through degradation might selectively terminate induction of the NF-κB signaling pathway in response to TCR activation.