As millions of Americans clamour for seats at the historic inauguration of the country’s first black president, a senator overseeing preparations has promised to criminalise profiteers reselling free tickets to the event for exorbitant sums.

Senator Dianne Feinstein, the Democratic chairman of the Joint Congressional Committee on the Inaugural Ceremony, has announced that she is drafting legislation under which sellers could face up to a year in jail and a $100,000 fine. Slamming such “unscrupulous” practices, the California senator insisted that the chance to witness one of the most important rituals of American democracy “should not be bought and sold like tickets to a football game.”

The swearing in of Barack Obama promises to draw the largest crowds in US history, with up to four million people expected to swamp the capital - surpassing the previous record set by Lyndon B Johnson’s 1965 inauguration and dwarfing the city's population (of 600,000). While most will have to be content with a glimpse of the presidential motorcade as it passes along the National Mall, soaring Obamania has seen unprecedented demand for the prized – and supposedly free - public tickets to the ceremony itself.

Some of the 240,000 tickets have been changing hands for up to $40,000 online, even though they are yet to be distributed. Ms Feinstein plans to make such practices a “class A” misdemeanour; the same penalties would apply to anyone found forging tickets.

"We've all read the news reports tickets bid on the Internet for $5,000 a piece, some as high as $40,000 each," Ms Feinstein told the Senate. "And 15 to 20 sites today are selling tickets they do not have and will not have unless somehow some way they obtain them. I find it unconscionable."

Ms Feinstein continued: "These tickets are supposed to be free for people, for the volunteers who gave up their weekends walking miles door-to-door to encourage voters to turn out to the polls on election day. For members of the African American community to see one of their own take the oath for the highest office in the land, for schoolchildren to witness history, and for the American public to watch this affirmation of our constitution. This peaceful transition from one administration to another - this is going to be a major civic event of our time."

Some websites, such as eBay, have already banned the sale of seats, while there are seven security measures implanted in the tickets themselves intended to restrict their use to the original recipient. Meanwhile the members of Congress who distribute tickets are inventing methods, such as raffles, to ensure an appearance of fairness.

Yesterday there were still tickets being offered for sale on sites such as Craigslist, even though they will not be distributed by congressmen until a week before the ceremony. Offices in the House of Representatives have now been limited to 198 tickets apiece and most have stopped taking requests. Senate offices have a larger allocation – 300-400 each but they too are swamped with demand – Ms Feinstein said her office had received 8,000 requests in a single day. The committee would be looking at "creative ways" to increase the number of tickets for the ceremony - which takes place on the west steps of the Capitol - she added.

At present, it is unclear whether the selling ban will go ahead. Lawmakers are in Washington this week for a lame duck session to discuss a bailout for the motor industry and an expansion of unemployment benefits and will have to decide whether to add the scalping legislation to their agenda. If they do, and it is passed, President Bush could sign it into law as one of the last acts of his presidency.

He, of course, is guaranteed a seat.

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