No standard says, or even suggest, that “residential ips are not valid.” However, reputation is an important par of mail security. Most, if not all residential IPs won’t be sending enough mail to even register a reputation (look up your own on https://talosintelligence.com/). This is the main challenge for self-hosters. That and a significant majority of residential ISPs block SMTP traffic, for very obvious reasons. This isn’t some Google/Microsoft conspiracy. SMTP is fundamentally a plain text format that has been abused for the last 30 or so years - 30, because that’s when MIME became a thing.