diff --git a/firmware/2lib/2api.c b/firmware/2lib/2api.c
index 28de834..2beb9ed 100644
--- a/firmware/2lib/2api.c
+++ b/firmware/2lib/2api.c
@@ -276,7 +276,7 @@
 	sd->hash_tag = tag;
 	sd->hash_remaining_size = pre->body_signature.data_size;
 
-	if (!(pre->flags & VB2_FIRMWARE_PREAMBLE_DISALLOW_HWCRYPTO)) {
+	if (vb2_hwcrypto_allowed(ctx)) {
 		vb2_error_t rv = vb2ex_hwcrypto_digest_init(
 			key.hash_alg, pre->body_signature.data_size);
 		if (!rv) {
@@ -291,7 +291,7 @@
 		VB2_DEBUG("HW crypto for hash_alg %d not supported, using SW\n",
 			  key.hash_alg);
 	} else {
-		VB2_DEBUG("HW crypto forbidden by preamble, using SW\n");
+		VB2_DEBUG("HW crypto forbidden by TPM flag, using SW\n");
 	}
 
 	return vb2_digest_init(dc, key.hash_alg);
diff --git a/firmware/2lib/include/2secdata.h b/firmware/2lib/include/2secdata.h
index c3355f8..5e41934 100644
--- a/firmware/2lib/include/2secdata.h
+++ b/firmware/2lib/include/2secdata.h
@@ -109,14 +109,18 @@
 	VB2_SECDATA_KERNEL_FLAG_DIAGNOSTIC_UI_DISABLED = (1 << 2),
 
 	/*
-	 * Allow HW acceleration for RSA.
+	 * Allow HW acceleration for crypto
 	 *
-	 * RW firmware currently set this flag to enable RSA acceleration.
-	 * Verstage will use HW implementation for RSA only when
-	 * this flag is set.
+	 * RW firmware currently set this flag to enable HW acceleration
+	 * for crypto. Verstage will use HW implementation for RSA/SHA
+	 * only when this flag is set.
 	 *
-	 * Note: this will only allow/disallow HWCRYPTO for RSA.
-	 * Using HW for hash digest is controlled by flag in the FW preamble.
+	 * Note: We used a flag in the FW preamble for this before.
+	 * FW preamble was checked by verstage so the effect was immediate.
+	 * However with TPM flag we have to modify this in RW stage which is
+	 * after verstage, so even if we clear this flag the first boot
+	 * WILL use hwcrypto, RW stage will run and clear this flag and then
+	 * hwcrypto will be disabled from next boot.
 	 */
 	VB2_SECDATA_KERNEL_FLAG_HWCRYPTO_ALLOWED = (1 << 3),
 };
diff --git a/firmware/2lib/include/2struct.h b/firmware/2lib/include/2struct.h
index 1202563..e0ef606 100644
--- a/firmware/2lib/include/2struct.h
+++ b/firmware/2lib/include/2struct.h
@@ -471,7 +471,9 @@
 /* Flags for vb2_fw_preamble.flags */
 /* Use RO-normal firmware (deprecated; do not use) */
 #define VB2_FIRMWARE_PREAMBLE_USE_RO_NORMAL 0x00000001
-/* Do not allow use of any hardware crypto accelerators. */
+/* Do not allow use of any hardware crypto accelerators.
+ * (deprecated; use VB2_SECDATA_KERNEL_FLAG_HWCRYPTO_ALLOWED instead)
+ */
 #define VB2_FIRMWARE_PREAMBLE_DISALLOW_HWCRYPTO 0x00000002
 
 /* Premable block for rewritable firmware, vboot1 version 2.1.
diff --git a/tests/vb2_api_tests.c b/tests/vb2_api_tests.c
index c5e4509..1fabb60 100644
--- a/tests/vb2_api_tests.c
+++ b/tests/vb2_api_tests.c
@@ -82,6 +82,9 @@
 
 	vb2api_secdata_kernel_create(ctx);
 	vb2_secdata_kernel_init(ctx);
+	if (hwcrypto_state != HWCRYPTO_FORBIDDEN)
+		vb2_secdata_kernel_set(ctx, VB2_SECDATA_KERNEL_FLAGS,
+				VB2_SECDATA_KERNEL_FLAG_HWCRYPTO_ALLOWED);
 
 	force_dev_mode = 0;
 	retval_vb2_fw_init_gbb = VB2_SUCCESS;
@@ -102,10 +105,7 @@
 	pre = vb2_member_of(sd, sd->preamble_offset);
 	pre->body_signature.data_size = mock_body_size;
 	pre->body_signature.sig_size = mock_sig_size;
-	if (hwcrypto_state == HWCRYPTO_FORBIDDEN)
-		pre->flags = VB2_FIRMWARE_PREAMBLE_DISALLOW_HWCRYPTO;
-	else
-		pre->flags = 0;
+	pre->flags = 0;
 
 	sd->data_key_offset = sd->workbuf_used;
 	sd->data_key_size = sizeof(*k) + 8;
@@ -741,26 +741,28 @@
 		"check digest value");
 
 	/* Test hwcrypto conditions */
-	reset_common_data(FOR_CHECK_HASH);
-	TEST_SUCC(vb2api_check_hash(ctx), "check hash good");
-	TEST_EQ(last_used_key.allow_hwcrypto, 0,
-		"hwcrypto is forbidden by TPM flag");
+	if (hwcrypto_state == HWCRYPTO_FORBIDDEN) {
+		reset_common_data(FOR_CHECK_HASH);
+		TEST_SUCC(vb2api_check_hash(ctx), "check hash good");
+		TEST_EQ(last_used_key.allow_hwcrypto, 0,
+			"hwcrypto is forbidden by TPM flag");
 
-	ctx->flags |= VB2_CONTEXT_RECOVERY_MODE;
-	TEST_SUCC(vb2api_check_hash(ctx), "check hash good");
-	TEST_EQ(last_used_key.allow_hwcrypto, 0,
-		"hwcrypto is forbidden by TPM flag on recovery mode");
+		reset_common_data(FOR_CHECK_HASH);
+		ctx->flags |= VB2_CONTEXT_RECOVERY_MODE;
+		TEST_SUCC(vb2api_check_hash(ctx), "check hash good");
+		TEST_EQ(last_used_key.allow_hwcrypto, 0,
+			"hwcrypto is forbidden by TPM flag on recovery mode");
+	} else {
+		reset_common_data(FOR_CHECK_HASH);
+		TEST_SUCC(vb2api_check_hash(ctx), "check hash good");
+		TEST_EQ(last_used_key.allow_hwcrypto, 1, "hwcrypto is allowed");
 
-	vb2_secdata_kernel_set(ctx, VB2_SECDATA_KERNEL_FLAGS,
-			VB2_SECDATA_KERNEL_FLAG_HWCRYPTO_ALLOWED);
-
-	TEST_SUCC(vb2api_check_hash(ctx), "check hash good");
-	TEST_EQ(last_used_key.allow_hwcrypto, 0,
-		"hwcrypto is forbidden on recovery mode");
-
-	ctx->flags &= ~VB2_CONTEXT_RECOVERY_MODE;
-	TEST_SUCC(vb2api_check_hash(ctx), "check hash good");
-	TEST_EQ(last_used_key.allow_hwcrypto, 1, "hwcrypto is allowed");
+		reset_common_data(FOR_CHECK_HASH);
+		ctx->flags |= VB2_CONTEXT_RECOVERY_MODE;
+		TEST_SUCC(vb2api_check_hash(ctx), "check hash good");
+		TEST_EQ(last_used_key.allow_hwcrypto, 0,
+			"hwcrypto is forbidden on recovery mode");
+	}
 
 	reset_common_data(FOR_CHECK_HASH);
 	TEST_EQ(vb2api_check_hash_get_digest(ctx, digest_result,