There's no doublespeak there. To regulate just means to make regular. If they make the reprehensible the regular way of doing things then they've still done the job they're nominally supposed to do. They could say all investigations have broad sweeping powers going forward and they would still be regulating investigatory powers.

We want regulation to be for the benefit of all so we attach an emotional meaning to it but nothing about the word says it has to be beneficial.