Jewish Home MK Shuli Moalem-Refaeli slammed Israel's Supreme Court for issuing a temporary injunction to freeze the Regulation Law.
"Again we see how the Supreme Court is destroying the boundaries between the lawmaking authority and the justice authority," Moalem-Refaeli said.
"The fight against Jewish settlement in Judea and Samaria, and against Israel's existence, is not just fought by terror and incitement. It's also fought by abusing Israel's justice system.
"If the Regulation Law is rejected, we will have to pass a different law, one which restricts the Supreme Court's authority, to the dismay of its princes and knights."
Israel's Regavim Movement, which worked to advance the Regulation Law, also responded to the Supreme Court's decision.
"This is a severe and dangerous precedent," a Regavim spokesman said. "It questions the Knesset's authority, and the authority of Israel's lawmakers. We call on the Knesset to pass a law which will balance the lawmakers' authority with that of the justice system."
The Regulation Law legalizes and protects thousands of Jewish homes in Judea and Samaria which were built with government backing and lacked absentee land claims, but against which there are now property claims.
Under the Regulation Law, homes built on such properties will be allowed to remain, and owners with proven claims to the land will be given a choice of receiving an alternate plot of land or monetary compensation for 125% of their land's value.