Arc is a cellular immediate-early gene (IEG) that functions at excitatory
synapses and is required for learning and memory. We report crystal structures
of Arc subdomains that form a bi-lobar architecture remarkably similar to the
capsid domain of human immunodeficiency virus (HIV) gag protein. Analysis
indicates Arc originated from the Ty3/Gypsy retrotransposon family and was
"domesticated" in higher vertebrates for synaptic functions. The Arc
N-terminal lobe evolved a unique hydrophobic pocket that mediates intermolecular
binding with synaptic proteins as resolved in complexes with TARPγ2 (Stargazin)
and CaMKII peptides and is essential for Arc's synaptic function. A consensus
sequence for Arc binding identifies several additional partners that include
genes implicated in schizophrenia. Arc N-lobe binding is inhibited by small
chemicals suggesting Arc's synaptic action may be druggable. These studies
reveal the remarkable evolutionary origin of Arc and provide a structural basis
for understanding Arc's contribution to neural plasticity and disease.