Judge Alison Arms dismissed the charges after initially reduced the couple's bail to USD 50,000, reported Ace Showbiz.
Alison said she found no probable cause to keep Randy and Evy in custody.
The judge told the couple to stay in Vermont while facing fugitive charges after being released from custody. The ruling, however, has not deterred Santa Barbara County DA Office from seeking extradition.
"We were prepared for this possibility," the DA's office said in a statement. The office has started the process of seeking an extradition warrant or governor's warrant. The process could take 60 to 90 days.
The 65-year-old actor said he and his wife planned to stay in Vermont. He even wanted to join a local fire department.
Randy and Evi were arrested on October 9 as "fugitives from justice" and "subject to extradition" when trying to cross the border from Canada into the United States.
The pair are wanted in Santa Barbara, California on felony charges related to a 2010 incident in which they were found squatting in a guesthouse of their old home. They are facing charges of vandalism, unauthorised entry into a dwelling, and failure to appear in court.
