Deubiquitinating enzyme that hydrolyzes ubiquitin moieties conjugated to substrates and thus, functions in various biological processes including inflammation, immune response (PubMed:29518389, PubMed:37683630). Modulates the Wnt/beta-catenin pathway by deubiquitinating and stabilizing tankyrases TNKS1 and TNKS2 (PubMed:28619731, PubMed:30926243). Regulates KEAP1-NRF2 axis in the defense against oxidative assaults by deubiquitinating KEAP1 and protecting it from degradation leading to degradation of the NRF2 transcription factor that is responsible for mounting an anti-oxidation gene expression program (PubMed:37339955). Positively regulates RNA virus-induced innate signaling by interacting with and deubiquitinating ERLIN1 and ERLIN2 (PubMed:37683630). In turn, restricts virus production by regulating cholesterol biosynthetic flux (PubMed:37683630). Acts as a negative regulator of interleukin-17-mediated signaling and inflammation through the removal of ‘Lys-63’-linked ubiquitination of TRAF5 and TRAF6 (PubMed:23042150). Prevents the ubiquitination and degradation of TRAF3 to reduce the phosphorylation levels of JNK and P38, the secretion of IL-1B and to induce endotoxin tolerance (PubMed:30579117). ; The muscle-specific isoform (USP25m) may have a role in the regulation of muscular differentiation and function.