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Why do you have to have the license plate of the state you live in?

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I was given my car when my grandpa died a little over a year ago. He lived in Oklahoma so the car has an Oklahoma license plate. I live in Texas and I get my insurance and everything taken care of here. I got pulled over the other night because my license plate isn't a Texas license plate. I was told that I needed to get a Texas license plate. I don't fully understand why I was pulled over for this. I have been driving the car for over a year, and I see people all of the time with Oklahoma plates that I'm pretty sure live in Texas.