It might help your understanding, if you read a literal translation. I'll contrast the translation that you posted, with what the Greek text actually reads, word for word.
31 Yet Israel, pursuing a
law of righteousness, into a
law of righteousness does not outstrip." 32 Wherefore? Seeing that it is
not out of faith, but as out of law works, they stumble on the
stumbling stone, 33 according as it is written: Lo! I am laying in Zion a
Stumbling Stone and a
Snare Rock, And the one believing on Him shall not be disgraced."
You see, out of the context of what Paul was actually saying, Law of Righteousness might sound like a good thing. It's a law; and it mentions righteousness; right? However as we can see when we look at a literal translation; this is not the case. The Law of righteousness is devoid of faith. It will trip you up. It's a trap.
Follow the link for chapter 9, and start back at verse 30, or even read before that, back where Paul sets the stage with Abaraham.
Then follow the link at the end of chapter 9, to the first part of chapter 10. (Remember Romans was written as a letter. The were no chapters when it was written. It was written as a whole.)
Then you will see that the nations had surpassed the non-believing Jews; because the non-believing Jews lacked faith.
Paul on the Law: Romans Chapter 9
I pray this helps.
Shalom