UTX condensates demethylate H3K27me3 and recruit histone lysine methyltransferase MLL4 and p300 to establish transcriptionally active chromatin loops that activate immune-related genes while suppressing cell division-related genes. The pancreatic cancer and myeloid leukemia-associated mutations in UTX impair these condensates. Here, KDM6A is linked to pancreatic neoplasm.