1) It doesn't even reference the relevant law
2) The relevant law is so simple and clear
42 USC 289(a) states:"The Secretary shall by regulation require that each entity which applies for a grant, contract, or cooperative agreement under this chapter for any project or program which involves the conduct of biomedical or behavioral research involving human subjects submit in or with its application for such grant, contract, or cooperative agreement assurances satisfactory to the Secretary that it has established (in accordance with regulations which the Secretary shall prescribe) a board (to be known as an “Institutional Review Board”) to review biomedical and behavioral research involving human subjects conducted at or supported by such entity in order to protect the rights of the human subjects of such research."[1]
To put it succinctly this only relates to any entity which applies for a grant, contract, coop. agreement under chapter 6A of 42 USC.
This in no way relates to private research. It's easy to get hung up on regulation spaghetti code, but regulations cannot exceed the scope of the statutes, which in turn cannot exceed the authority of Congress.
Edit: add source [1] https://www.law.cornell.edu/uscode/text/42/289