The reason [for this transcendence] is that the ChaBaD of Asiyah of the state of Neshamah is the source of life of ChaBaD of Nefesh-Ruach and their offspring, and their coming into being ex nihilo with their offspring, unto the ultimate stage of Asiyah, namely the earth and all its hosts.

[The ChaBaD of Asiyah (in the state of Neshamah) is thus a source for created beings.]

But as to the ChaBaD of the laws with their rationales, that are in Malchut of Beriah and Yetzirah.

[This level of ChaBaD is not a source of created beings; rather]: the function of the Chochmah [within them] is the rectification of the visages of Atzilut, upon which are dependent all the rationales of the commandments - [the rationales of] the positive commandments [depend] on the five attributes of Kindness of Za of Atzilut, and [the rationales of] the prohibitions in the five attributes of Severity of Za of Atzilut.

Therefore, even when they descended to be clothed in created beings, [even when the rationales for the laws, that essentially derive from visages of Atzilut, descended to become rationales for laws for created beings], - they are in Malchut of Beriah and Yetzirah of the specific [G-dly] state of Neshamah, which is of the vessels of Atzilut - [for the thirty vessels of Zu'n of Atzilut become a Neshamah for Beriah, Yetzirah and Asiyah], and not of the degree of Ruach and Nefesh; [the rationales for the laws did not vest themselves within Ruach and Nefesh, which are created beings].

Now though ChaBaD of Beriah-Yetzirah of the state of Neshamah by far transcend Malchut of Beriah-Yetzirah of the state of Neshamah, [for ChaBaD is the highest of the Sefirot of the world, while Malchut is the lowest], still, [the ChaBaD of Beriah and Yetzirah] are the source for ChaBaD of Beriah-Yetzirah of the state of Nefesh-Ruach, namely the angels.

[How do we then say that Malchut of Beriah and Yetzirah of the state of Neshamah cannot descend to become a source for created beings, when ChaBaD of Beriah and Yetzirah of the state of Neshamah that is far loftier than Malchut does serve as a source for created beings?]

This is not a question at all.

For in truth, the angels and souls [that are created of Cha-BaD of Beriah and Yetzirah] are only of a drop drawn from ChaBaD of the Neshamah to the attribute of Yesod of Za, and then transmitted to nukva, [i.e., to Malchut], and from there they [the souls and angels] went forth in a state of "birth" - [a new entity resulted.

Thus, this is not a mere emanation from ChaBaD, as is the case with laws, for such an emanation cannot in fact serve as a source of created beings.

Rather, it resembles the drop that brings about a birth.

For this reason it is possible that created beings should result even from ChaBaD of Beriah and Yetzirah].

For even if it is proposed that they are created from the radiance of the vessels of nukva of Atzilut, nevertheless, they themselves descend into Beriah, Yetzirah and Asiyah and become Neshamah unto them.

But the essence of ChaBaD of Neshamah extends into the "6 directions" of Zu'n, and there they are the Six Orders of Mishnah and the Gemara - [the laws of the Torah.

The essence of ChaBaD thus descends specifically within the laws of the Torah, which are Divinity. Torah, in turn, descends within the level of Neshamah, which is also Divinity.