Hepcidin transcription depends upon signaling through BMP receptors (BMP-Rs) and downstream Smads. BMPs can act as autocrine or paracrine hormones. Binding of BMP to cell surface HJV positions BMP to activate BMP receptors. Activation of BMP receptors leads to the generation of phosphorylated RSmads, which dimerize with Smad4. The RSmad/Smad4 heterodimer translocates into the nucleus and activates transcription of the HAMP gene, which encodes hepcidin. Soluble HJV binding to BMP prevents the formation of a cell surface BMP-HJV complex and blocks activation of BMP receptors. Inflammatory cytokines such as IL-6 bind to IL-6 receptors (IL-6Rs), activating Stat3, which also binds to the HAMP promoter. Stat3 activation requires the presence of Smad4, as deletion of the Smad4 gene prevents IL-6 induction of hepcidin. Smad4 is downstream of TFR2 and HFE, which suggests that the signal provided by these proteins also activates the HAMP promoter or that these membrane proteins affect BMP receptor signal transmission. In their study in this issue of the JCI, Babitt and colleagues demonstrate in vivo that soluble HJV binds BMPs produced by the liver, leading to alteration in iron homeostasis (3).