In June, USADA accused Mr. Armstrong and others of conspiring to cheat by using performance-enhancing drugs.
The case is still focused on whether the USADA has the right to prosecute Armstrong.
But that has changed since the USADA report alleging doping by Armstrong and others.
But Travis Tygart, chief executive of Usada, said elite events have traditionally taken priority.
Another racer in that event, Gabriele Guarini, 50, also tested positive for EPO, according to Usada.
To prove its case, USADA would have to convince two arbitrators that the allegations are true.
"USADA has already done the work in the sports case and won, " Tygart wrote.
Landis also was a key witness in a USADA investigation last year that exposed Armstrong's doping.
The cyclist and his attorneys ultimately were not satisfied with USADA's offer, the person said.
However, Armstrong disputed that the USADA has the power to take away his titles.
It puts off the airing of the detailed evidence the USADA has gathered against him.
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Armstrong has consistently denied doping accusations, and his lawyer called the USADA probe a "witch hunt" Wednesday.
In October, Usada chose to release to the public thousands of pages of documents supporting its decision.
Armstrong hasn't spoken at length and publicly about the thick dossier of evidence USADA published in October.
The USADA suspended Ferrari for life in July, naming him as part of a large-scale doping conspiracy.
"In certain cases, (a federal criminal case can be) a double-edged sword, " says USADA chief executive Travis Tygart.
Armstrong has also made his feelings clear about the USADA's offers of immunity to his his former colleagues.
One of Usada's accusations was that Mr. Armstrong's doping program was the most sophisticated in all of sports.
If the USADA can prove he cheated, he could be stripped of his seven Tour de France titles.
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Hincapie acknowledged using banned substances in his affidavit to the USADA and in a statement released the same day.
To qualify for such a wild card, all Armstrong needed to do was defend himself against the Usada charges.
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He called the USADA allegations damaging to his reputation, especially since he says he continues working with high-profile athletes.
Since cycling is an Olympic sport, Usada has the power to test at all sanctioned races, even amateur events.
The only limit on Usada's potential for growth is the ability of race organizers to pay for its services.
In September, Usada announced that Florida masters racer Julio Cruz, 44, had tested positive for the banned stimulant Methylhexaneamine.
" Armstrong, the judge pointed out, "has not exhausted his internal remedies, namely ... procedures in the USADA protocol.
Mr. Armstrong chose not to fight Usada's charges, which alleged that he had participated in a conspiracy to cheat.
In August, two months after Mr. Armstrong was first charged with doping by USADA, Ms. Jaeger left the group.
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Soon it was back to Usada and longtime Armstrong associate, doctor Michele Ferrari.
The recent USADA report was very damning as far as Lance is concerned.
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