Does Grace replace the law?

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Yes, the HS replaces the law (Romans 8).
The Holy Spirit gives the Law into your heart and mind not replaces it.

"I will put my laws in their hearts" is a promise of the New Covenant referencing Jeremiah 31:33 which shows it was always the same.

Hebrews 10:16-17
16 This is the covenant that I will make with them after those days, saith the Lord, I will put my laws into their hearts, and in their minds will I write them;
17 And their sins and iniquities will I remember no more

Jeremiah 31:34
33 But this shall be the covenant that I will make with the house of Israel; After those days, saith the Lord, I will put my law in their inward parts, and write it in their hearts; and will be their God, and they shall be my people.
34 And they shall teach no more every man his neighbour, and every man his brother, saying, Know the Lord: for they shall all know me, from the least of them unto the greatest of them, saith the Lord: for I will forgive their iniquity, and I will remember their sin no more.
 
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