If it's the Space Gem, its power is in transportation and, in the movie universe it seems, in transporting energy. I have no problem with the idea of the scepter still being powered by the Space Stone. Alternatively, it could just be a more conventional weapon that was built to influence the Tesseract but isn't necessarily powered by it.
I do like the idea of it being the Mind Gem, though. I like the idea of hiding an Infinity Stone in plain sight throughout the movies.