Acts as a transcriptional activator. Binds to the DNA consensus sequence 5'-GACCACCCA-3' . Regulates the transcription of specific genes during normal development . Plays a role in craniofacial development and digital development, as well as development of the central nervous system and gastrointestinal tract. Mediates SHH signaling . Plays a role in cell proliferation and differentiation via its role in SHH signaling.Tethered in the cytoplasm by binding to SUFU . Activation and translocation to the nucleus is promoted by interaction with STK36 . Phosphorylation by ULK3 may promote nuclear localization . Translocation to the nucleus is promoted by interaction with ZIC1 .Detected in testis (at protein level) . Testis, myometrium and fallopian tube. Also expressed in the brain with highest expression in the cerebellum, optic nerve and olfactory tract. Isoform 1 is detected in brain, spleen, pancreas, liver, kidney and placenta; isoform 2 is not detectable in these tissues .