diff --git a/src/V3Dfg.cpp b/src/V3Dfg.cpp
index 04679edd8..9d498a02b 100644
--- a/src/V3Dfg.cpp
+++ b/src/V3Dfg.cpp
@@ -639,9 +639,6 @@ DfgVertexVar* DfgVertex::getResultVar() {
     this->forEachSink([&resp](DfgVertex& sink) {
         DfgVertexVar* const varp = sink.cast<DfgVertexVar>();
         if (!varp) return;
-        // Ignore SystemC variables, they cannot participate in expressions or
-        // be assigned rvalue expressions.
-        if (varp->varp()->isSc()) return;
         // First variable found
         if (!resp) {
             resp = varp;
diff --git a/src/V3Dfg.h b/src/V3Dfg.h
index be198cf47..a725e1a60 100644
--- a/src/V3Dfg.h
+++ b/src/V3Dfg.h
@@ -918,12 +918,14 @@ DfgVertexVar::DfgVertexVar(DfgGraph& dfg, VDfgType type, AstVar* varp)
     , m_varp{varp}
     , m_varScopep{nullptr} {
     UASSERT_OBJ(dfg.modulep(), varp, "Un-scoped DfgVertexVar created in scoped DfgGraph");
+    UASSERT_OBJ(!m_varp->isSc(), varp, "SystemC variable is not representable by DfgVertexVar");
 }
 DfgVertexVar::DfgVertexVar(DfgGraph& dfg, VDfgType type, AstVarScope* vscp)
     : DfgVertexUnary{dfg, type, vscp->fileline(), dtypeFor(vscp)}
     , m_varp{vscp->varp()}
     , m_varScopep{vscp} {
     UASSERT_OBJ(!dfg.modulep(), vscp, "Scoped DfgVertexVar created in un-scoped DfgGraph");
+    UASSERT_OBJ(!m_varp->isSc(), vscp, "SystemC variable is not representable by DfgVertexVar");
 }
 
 //------------------------------------------------------------------------------
diff --git a/src/V3DfgAstToDfg.cpp b/src/V3DfgAstToDfg.cpp
index 8691b1a53..f5f4f03ed 100644
--- a/src/V3DfgAstToDfg.cpp
+++ b/src/V3DfgAstToDfg.cpp
@@ -125,8 +125,9 @@ class AstToDfgVisitor final : public VNVisitor {
 
     void markReferenced(AstNode* nodep) {
         nodep->foreach([this](const AstVarRef* refp) {
-            // No need to (and in fact cannot) mark variables with unsupported dtypes
-            if (!DfgVertex::isSupportedDType(refp->varp()->dtypep())) return;
+            // No need to (and in fact cannot) mark variables if:
+            if (!DfgVertex::isSupportedDType(refp->varp()->dtypep())) return;  //  unsupported type
+            if (refp->varp()->isSc()) return;  // SystemC
             VariableType* const tgtp = getTarget(refp);
             // Mark vertex as having a module reference outside current DFG
             getNet(tgtp)->setHasModRefs();
@@ -809,6 +810,7 @@ class AstToDfgVisitor final : public VNVisitor {
             || nodep->varp()->isIfaceRef()  // Cannot handle interface references
             || nodep->varp()->delayp()  // Cannot handle delayed variables
             || nodep->classOrPackagep()  // Cannot represent cross module references
+            || nodep->varp()->isSc()  // SystemC variables are special and rare, we can ignore
         ) {
             markReferenced(nodep);
             m_foundUnhandled = true;
diff --git a/src/V3DfgPasses.cpp b/src/V3DfgPasses.cpp
index 717012a10..0168ba629 100644
--- a/src/V3DfgPasses.cpp
+++ b/src/V3DfgPasses.cpp
@@ -169,18 +169,8 @@ void V3DfgPasses::cse(DfgGraph& dfg, V3DfgCseContext& ctx) {
 void V3DfgPasses::inlineVars(DfgGraph& dfg) {
     for (DfgVertexVar& vtx : dfg.varVertices()) {
         if (DfgVarPacked* const varp = vtx.cast<DfgVarPacked>()) {
-            // Don't inline SystemC variables, as SystemC types are not interchangeable with
-            // internal types, and hence the variables are not interchangeable either.
-            if (varp->hasSinks() && varp->isDrivenFullyByDfg() && !varp->varp()->isSc()) {
+            if (varp->hasSinks() && varp->isDrivenFullyByDfg()) {
                 DfgVertex* const driverp = varp->srcp();
-
-                // We must keep the original driver in certain cases, when swapping them would
-                // not be functionally or technically (implementation reasons) equivalent:
-                // 1. If driven from a SystemC variable (assignment is non-trivial)
-                if (DfgVertexVar* const driverVarp = driverp->cast<DfgVarPacked>()) {
-                    if (driverVarp->varp()->isSc()) continue;
-                }
-
                 varp->forEachSinkEdge([=](DfgEdge& edge) { edge.relinkSource(driverp); });
             }
         }
@@ -559,9 +549,7 @@ void V3DfgPasses::eliminateVars(DfgGraph& dfg, V3DfgEliminateVarsContext& ctx) {
             varp->replaceWith(varp->srcp());
             varp->nodep()->unlinkFrBack()->deleteTree();
         } else if (DfgVarPacked* const driverp = varp->srcp()->cast<DfgVarPacked>()) {
-            // If it's driven from another variable, it can be replaced by that. However, we do not
-            // want to propagate SystemC variables into the design.
-            if (driverp->varp()->isSc()) continue;
+            // If it's driven from another variable, it can be replaced by that.
             // Mark it for replacement
             ++ctx.m_varsReplaced;
             UASSERT_OBJ(!varp->hasSinks(), varp, "Variable inlining should make this impossible");
diff --git a/src/V3DfgPeephole.cpp b/src/V3DfgPeephole.cpp
index b91e34071..f308a0c7c 100644
--- a/src/V3DfgPeephole.cpp
+++ b/src/V3DfgPeephole.cpp
@@ -1202,7 +1202,7 @@ class V3DfgPeephole final : public DfgVisitor {
     void visit(DfgArraySel* vtxp) override {
         if (DfgConst* const idxp = vtxp->bitp()->cast<DfgConst>()) {
             if (DfgVarArray* const varp = vtxp->fromp()->cast<DfgVarArray>()) {
-                if (varp->srcp() && !varp->varp()->isForced() && !varp->varp()->isSc()) {
+                if (varp->srcp() && !varp->varp()->isForced()) {
                     if (DfgSpliceArray* const splicep = varp->srcp()->cast<DfgSpliceArray>()) {
                         if (DfgVertex* const driverp = splicep->driverAt(idxp->toSizeT())) {
                             if (!driverp->is<DfgVertexSplice>()) {
diff --git a/src/V3DfgRegularize.cpp b/src/V3DfgRegularize.cpp
index d8de75898..64eef883a 100644
--- a/src/V3DfgRegularize.cpp
+++ b/src/V3DfgRegularize.cpp
@@ -54,14 +54,6 @@ class DfgRegularize final {
                           });
                     return hasNonVarSink;
                 }
-                // Anything that drives an SC variable needs an intermediate,
-                // as we can only assign simple variables to SC variables at runtime.
-                const bool hasScSink = vtx.findSink<DfgVertexVar>([](const DfgVertexVar& var) {  //
-                    return var.varp()->isSc();
-                });
-                if (hasScSink) return true;
-                // // Splice vertices always need a variable as they represent partial updates
-                // if (vtx.is<DfgVertexSplice>()) return true;
                 // Operations without multiple sinks need no variables
                 if (!vtx.hasMultipleSinks()) return false;
                 // Array selects need no variables, they are just memory references