diff --git a/nixos/modules/system/boot/systemd.nix b/nixos/modules/system/boot/systemd.nix
index 92c9ee0c469..2391e85f9f7 100644
--- a/nixos/modules/system/boot/systemd.nix
+++ b/nixos/modules/system/boot/systemd.nix
@@ -137,7 +137,6 @@ let
 
       # Slices / containers.
       "slices.target"
-      "system.slice"
       "user.slice"
       "machine.slice"
       "machines.target"
@@ -821,7 +820,8 @@ in
 
     system.requiredKernelConfig = map config.lib.kernelConfig.isEnabled
       [ "DEVTMPFS" "CGROUPS" "INOTIFY_USER" "SIGNALFD" "TIMERFD" "EPOLL" "NET"
-        "SYSFS" "PROC_FS" "FHANDLE" "DMIID" "AUTOFS4_FS" "TMPFS_POSIX_ACL"
+        "SYSFS" "PROC_FS" "FHANDLE" "CRYPTO_USER_API_HASH" "CRYPTO_HMAC"
+        "CRYPTO_SHA256" "DMIID" "AUTOFS4_FS" "TMPFS_POSIX_ACL"
         "TMPFS_XATTR" "SECCOMP"
       ];
 
diff --git a/pkgs/os-specific/linux/systemd/default.nix b/pkgs/os-specific/linux/systemd/default.nix
index a792283e70e..5fea5241d13 100644
--- a/pkgs/os-specific/linux/systemd/default.nix
+++ b/pkgs/os-specific/linux/systemd/default.nix
@@ -18,14 +18,14 @@ let
   pythonLxmlEnv = buildPackages.python3Packages.python.withPackages ( ps: with ps; [ python3Packages.lxml ]);
 
 in stdenv.mkDerivation rec {
-  version = "237";
+  version = "238";
   name = "systemd-${version}";
 
   src = fetchFromGitHub {
     owner = "NixOS";
     repo = "systemd";
-    rev = "98067cc806ae0d2759cdd2334f230cd8548e5317";
-    sha256 = "077svfs2xy3g30s62q69wcv5pb9vfhzh8i7lhfri73vvhwbpzd5q";
+    rev = "243d65d38f2df82d4a39f6a9970337803dff65a1";
+    sha256 = "098hxlkh6q17rxa178adylksxnnd4x9rxb8amjnlbiydcc6kaa5n";
   };
 
   outputs = [ "out" "lib" "man" "dev" ];
@@ -177,13 +177,6 @@ in stdenv.mkDerivation rec {
 
     rm -rf $out/etc/systemd/system
 
-    # Install SysV compatibility commands.
-    mkdir -p $out/sbin
-    ln -s $out/lib/systemd/systemd $out/sbin/telinit
-    for i in init halt poweroff runlevel reboot shutdown; do
-      ln -s $out/bin/systemctl $out/sbin/$i
-    done
-
     # Fix reference to /bin/false in the D-Bus services.
     for i in $out/share/dbus-1/system-services/*.service; do
       substituteInPlace $i --replace /bin/false ${coreutils}/bin/false